The full form of IVA is Individual Voluntary arrangement. IVA is a formal agreement that allows you to pay off your debts easily. Through Individual Voluntary arrangement, you will be able to pay off your full debts usually within five to six years. IVA offers another option of payment called lump-sum IVA which allows you to make a one-off payment.
As per last year’s report, our IVA proposals were accepted by creditors immensely. Our IVAs are the best and can be the reason for the successful pay off of your debts.
There are several benefits of an IVA . To know more about them, check out the following points.
IVA allows you to make affordable monthly payments over five to six years.
This can be a good option if you are a homeowner. Through IVA you can secure your property. You just have to maintain your mortgage payments.
You do not need to pay any setup fees for IVA. Only after IVA is agreed and is in the process, the creditor will set an amount, though the fees will be added in your monthly repayments.
The remaining unsecured debt will be written off once you will make your final payment. After that, your creditors can not ask you for payments.
There are also risks of an IVA which you should be aware of.
If you have home equity then you can apply for another loan or you can remortgage but it will increase your interest rate.
In case, a remortgage is not possible, then you can make extra payments (12 maximum) or you can go to a third party to get an equivalent amount as to your equity.
If IVA fails then you might have to face bankruptcy. Your credit rating can be affected.
Your IVA can be approved by the creditors. All your unsecured debt will be written off not the outstanding amount.
IVA is documented on a public register. Once the IVA is in progress, your spending will be controlled until you make your final payment.
If you do not know how to apply for an IVA, here is the procedure.
Before you apply for an IVA, check whether you are eligible or not. To know that, you can refer to our free online advice tool or call us and we will arrange a meeting with our experts.
If IVA is the right solution for you then our company StepChange Voluntary Arrangements can guide you in the whole set up process.
Our team will verify your asset, budget, and condition and send the IVA proposal to your creditors.
We are an award-winning IVA team.
Creditors acknowledged our 98% IVA proposals.
In 2017, £32m of our clients' debts were written off by the creditors.
We regularly receive several questions related to an IVA. Here are some common IVA questions selected by our experts for your quick reference.
IVA helps to make a legal arrangement between you and your creditors. If the amount is affordable for you then IVA could be the right choice for you. To know whether you are eligible for an IVA, get help with our free, confidential online debt advice tool. As an IVA has several risks and you must know its consequences and check your personal and financial condition before you apply for this. If you need help then contact our debt advice.
Yes IVA can affect your credit file in various ways. IVAs allow you to pay off your debts over five to six years. You can also extend the time if you fail payments. During this time, you can not break any rules of the agreement and you have to maintain a restriction over your money. For more than £500 worth of credit, you have to get written permission from your IP.
There is a public register called Individual Insolvency register where you can find the full details of individual voluntary arrangements.
There are costs and fees involved with an IVA. Our IVA costs and fees maintain industry standards. We offer advice and support at Step change Voluntary Arrangements. The fees and costs of the IVA will be decided by you and your creditors. For some reason, if you do not want to continue an IVA with us, then you do not need to pay any fees for that. But there are companies who can charge fees so you better check and then go ahead.
If you are a director of a company or in law and property roles then IVA can affect your job. Even IVA can hurt you if you are a financier or accountant or a pub licensee. So make sure before you go for it, you ask your hr team confidentially or get in touch with your professional membership body.
Once IVA begins and you start to pay off your debts, contact from your creditors will start to decrease. Sometimes you may get emails and letters from creditors which is normal. But if you get any threatening or any county court judgment then get in touch with us or contact your IVA supervisor as soon as possible.
IVA is one of the best legally binding debt solutions but it has negative consequences. So before you go with an IVA make sure you have detailed information about it. Use our IVA guide section and our experts will guide you about the entire process.
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