Debt Help Options

See what debt solutions are available to you:

  Write off unaffordable debt
  Reduce & consolidate debts
  Freeze interest and charges
  Legal protection against creditors
Disclaimer: May not be suitable in all circumstances. Your credit rating may be affected. For guidance only. Fees apply. Results are not definitive advice. Financial information entered must be accurate and would require verification. Other factors influence your most suitable debt solution.

Eligibility Check

Money Helper is an important service set up by the government. They provided free debt counselling, debt adjustment and credit information. Money Helper is part of the Money & Pensions Service. We are not affiliated with Money Helper in any way

IVA (Individual Voluntary Arrangement)

An individual voluntary arrangement (IVA) is a formal debt solution. Individual, meaning it is for individual people, or couples, including sole traders. It’s voluntary because you as the debtor are proposing a reduced repayment term to your creditors (the people you owe money to). The arrangement part refers to the legally binding agreement between you and your creditors to pay back your debts at a reduced amount over a period of time (typically 60 months). This means it’s approved by the court and your creditors have to stick to it.

When you enter into an IVA a proposal will be put to your creditors and if 75% of them (by debt value) agree to the proposal, then the IVA will be put into place. An IVA is only available in England, Wales and Northern Ireland.

The solution will be logged on the insolvency register, which is a public register.

An IVA will not be the best solution for everyone. You must seek professional advice before considering an IVA.

3 Benefits of an IVA

An IVA uses legislation that can stop bailiff action

Any debts included in an IVA are completely protected against debt collectors calling or visiting you to collect debts.

Consolidate your debt into one affordable monthly payment

Debts included in an IVA will be consolidated into one simple monthly payment, making it easier to plan your monthly finances.

You could write off more than half of your debt on the IVA completing. Subject to acceptance.

Most people will get a portion of debt written off in an IVA. The amount that gets written off will vary from person to person, but once you have completed the IVA any debt that is still existing will be written off.

An example of a typical IVA

Total client debt of £16,499

Contractual repayments £553.79
A reduction of over 78%
Total IVA payments £7,160.17
Total IVA fees £3,650
Total creditor distributions £3,510.17
Total debt written off at end of IVA £12,988.83

 

Monthly IVA repayment of just £119

*Subject to creditor acceptance
*Payment and debt write off subject to individual circumstances
*Credit rating will be affected
*Fees apply – Nominee and Supervisor fees will be charged by the Insolvency Practitioner – these fees will be included within your monthly payment

Considerations of an IVA

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You make one monthly payment usually for a period of 5 years
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Interest and charges are frozen if the IVA is accepted
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If you are a homeowner, you can keep your home providing that you maintain payment towards your mortgage any secured loans
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There are no set up fees with an IVA. Any fees charged by the Insolvency Practitioner are usually included within your monthly payment
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Creditors can no longer contact you or take legal action once the iva is in place
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An IVA will affect your credit rating and will be registered on your credit file for 6 years
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If the arrangement fails, there is a risk of bankruptcy
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Details of an IVA are registered on the Insolvency Register which is a public register
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If you are a homeowner you may be required to release equity in the final year of the IVA and a remortgage may only be available on less favourable terms. If you are unable to remortgage, you may need to make additional payments for a further 12 months
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There are restrictions on expenditure for someone entering into an IVA
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Only unsecured debts included within the individual voluntary arrangement or protected trust deed may be discharged at the end of the period and unsecured debts not included remain outstanding
How quickly will I be protected?

Your creditors must be given at least two weeks’ notice of the IVA before they are able to vote on it. Typically you will need to wait two to four weeks after signing your IVA proposal to receive the legal protection of your IVA. During this time most creditors will voluntarily pause all collections activity. However, this cannot be guaranteed.

How long will my IVA last?

Most IVAs typically last 60 months, during which time you will be legally protected from further collections activity or legal proceedings for the debts included in the IVA. Interest and charges will be frozen.

Homeowners may need to release equity from the value of their homes to pay off debts, and that a remortgage may attract higher interest rates or, if no remortgage is available, an individual voluntary arrangement may be extended for 12 months.

What happens during the IVA?

While you have an IVA your creditors should stop:

  • charging interest on your debts
  • chasing you to pay your debts
  • not take any further legal action in relation to what you owe

While you’re in an IVA you must:

  • make the agreed payments – this is usually a single monthly payment or a lump sum
  • let your Insolvency Practioner know if your circumstances change or you get any other money
  • not take out any new credit without permission, for example loans
How much debt is included?

You can include any amount of debt in your IVA. There are no minimum or maximum limits.

Why IVA Help?

Individual voluntary arrangements (IVAs) are by far the most popular formal insolvency solution for individuals in the UK today. During the first quarter of 2022 more than 74% of all new personal insolvencies were IVAs.*
An IVA is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time.

At IVA Help Ltd we have a combined experience of many decades successfully helping people who often through unforeseen circumstances find themselves struggling with unaffordable unsecured debts.

Take the first step to a brighter future today by contacting one of our friendly, knowledgable experts to see if an IVA could be the solution you’ve been searching for.

What if my circumstances change?

If your circumstances change during the term of the IVA your Insolvency Practitioner can use their discretion to grant a temporary payment break or modify the terms of the arrangement. Therefore it is important you keep in touch with us throughout the term of your IVA and inform us of any changes in your circumstances as soon as possible.

Important information Regarding Individual Voluntary Arrangements (IVAs)

An IVA will not be the best solution for everyone. You must seek professional advice before considering an IVA.

What if the IVA fails?

An IVA will not be the best solution for everyone. You must seek professional advice before considering an IVA.

DEAL WITH YOUR DEBT TODAY TO SECURE A BRIGHTER FUTURE FOR YOU AND YOUR FAMILY

Answer a few quick questions

Use our easy online questionnaire to start your journey and see how we can help. Once complete a friendly member of our team will be in touch to discuss your situation.

Speak to a debt specialist

Book a telephone consultation today – You can speak to a specialist immediately. Alternatively, if you are not ready to talk to someone use our unique contact-free fact-find service.

Choose your plan

Once we’ve assessed your personal circumstances you are free to choose the best option for you. This is 100% confidential and with no obligation to choose any of the solutions we discuss.