An IVA is a form
of debt management programme set up by H M Government to provide a solution
to personal debt and deal with the issue of individual insolvency.
The needs of one
household or one individual can vary greatly from the needs of the next.
Any IVA advice given
must thus reflect the unique nature of the situation people find themselves
A normal Individual
Voluntary Arrangement will be set to run for five years and after this
all debts are discharged from a person's credit record.
An IVA will write
off the bulk of your debt at the start of the programme (although be
wary of the exaggerated claims made in some circles: it is seldom more
than 60 or 65% of unsecured debt which may be 'written off' in this
way). Any good IVA debt advice of this sort will ensure you get the
best results with the lowest monthly repayments together with the greatest
percentage of debt written off at the outset.
So complete the
application form for impartial and independent IVA debt advice
which is right for your own circumstances.
If you have at least
two accounts in debt, and total debts of £2,000 or more, use the
form below to see if you qualify. (If you owe less than this, or are
on state benefits, then use this
link to apply.)
be aware that figures entered need to be accurate by law, and to give
the best service to you. It is extremely important that you budget for
all necessary expenditure including rent or mortgage, council tax and
utility bills, etc., and any other necessary outgoings related to the
upkeep of your household and inrelation to any specific circumstances
that may relate to you. This website only collects data on behalf of
debt management professionals, from which it will receive affiliate
remuneration for data collection only and does not itself engage in
any debt management services. Other debt management options are available
and may be more suitable. People entering into an IVA or debt management
will have this entered on their credit profile and this may affect their
ability to get credit in the short term or even in the long term in
some cases. It is free to apply from this website; you will be given
advice by debt management professionals and a 'cooling off' period,
by law, to decide whether or not the debt management plan is suitable
for you, and you should be aware that a fee will be chargeable upon
a successful arrangement, as with any commercial transaction. Failure
to meet the repayments on an IVA or any debt management programme may
result in serious consequences, including, but not limited to, bankruptcy.
Bankruptcies, CCJs and similar defaults will be entered into a public
register and will remain there for a statutory period of not less than
six (6) years.
Credit Licence number 633327.
IVA debt advice
will typically be given by a specialist insolvency practitioner and
the resulting IVA or similar debt management plan will be made especially
to address the specific requirements. There is no average method to
this as each situation is different, and some circumstances are exceedingly
different. The selected insolvency practitioner will draw up the best
plan according to the client's own individual circumstances and draw
up a plan of payments to creditors and this is usually for 60 months,
though in certain situations this may be varied.
Good IVA advice
is a very useful legal measure and many people would jump at the chance
of applying for one of these as it is legally binding and discharges
the holder from all debts at the end of the term. It is a much more
amiable answer to an individual's debt problem than other harsher instruments
such as bankruptcy and carries none of bankruptcy's sting.
Most types of IVA
will normally be drafted to serve over a period of 60 months, but often
this will vary according to circumstances. At the end of this period
the debt is said to be discharged and the client discharged. All debt
records registered against the client's name and address will be struck
from the credit records.
attempt to help people who are suffering from debt in various ways.
There are recognised programmes like The diverse corporate and individual
voluntary arrangements to facilitate the procedures of corporate and
personal insolvency and to palliate what has always been a highly difficult
time, and certainly all good IVA debt advice is an integral part of
the solution. The object of this is intended to be toward safeguarding
assets wherever possible and also in safeguarding the property of petitioners
by statutory means. This applies to both private property and the security
of businesses on which individual security depends.
One great benefit
of an arrangement like this is that it will immediately cut thedebt
by a large proportion. This great reduction in debt makes a substantial
difference and is the chief thing that distinguishes an IVA from a conventional
debt management plan. So anyone seeking any sort of debt reduction programme
should apply for that over a standard debt relief program on all occasions.
In order to be
eligible for an IVA the applicant must have a nett income in excess
of a certain minimum amount and have debts of more than a specified
sum and no greater than a certain sum, and these values may alter from
one insolvency company to the next. Normally the income must exceed
the repayments after other necessary outgoings have been met including
the mortgage and council tax and utility bills. The usual minimal amount
of personal debt is around £2,000 although this figure can vary. A ceiling
of £50,000 is sometimes imposed, though by going through a broker the
client will be steered towards the best source to handle their own particular
a look at the Insolvency Service's leaflet called 'In Debt', downloadable
website is property of IVA Debt Advice. Copyright 2002 -Thereafter.
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