If you’re struggling with personal debt, you can apply for an Individual Voluntary Arrangement (IVA). When considering applying for an IVA, you should think carefully about all options available for the situation you find yourself in.
We are licensed insolvency practitioners (IPs) and can assess your situation and offer free, impartial advice as we assist you in applying for an IVA.
The IVA application
If you apply for an IVA, there are advantages and disadvantages which you should carefully consider before entering the process.
Speak to us
To apply for an IVA, the first thing you should do is speak to one of our initial advisors to discuss the options available. These advisors will offer free, impartial advice with no obligation, and will recommend the best way forward based on your circumstances.
Provide basic information
We’ll need an understanding of your financial situation to allow us to assess the viability of an IVA application. For example, we’d need your monthly outgoings and income. This information will enable us to put together a proposal containing what could be paid back realistically.
Proposal to creditors
Once we have all the necessary information, our IPs will draft a proposal and present it to your creditors, usually at a virtually held meeting. This proposal will represent your affordability to repay your debts and return to creditors.
Your creditors will then vote on the proposal; for it to pass, it needs to be approved by 75% (of the value of the debt) of the creditors who vote.
Begin the IVA
Following the meeting, if approved, the IVA comes into force, and you’ll start paying back your debt in monthly amounts. Your IP will act as the supervisor and distribute the payments to creditors.
Once an IVA is agreed, you must stick to the repayment plan for the duration of the arrangement. During the IVA, the IP will handle negotiations with your creditors, and stay by your side during the process, keeping you updated for the duration.
If you struggle with the payments or your circumstances change, speak to your IP as soon as possible. If you default on the payments, the IVA will fail.
What if my proposal is rejected?
If less than 75% of the creditors by the value of debt agree, the IVA is rejected, and you will have to explore other debt-relief options or consider revising the terms of the IVA Proposal.
To apply for an IVA, you need to provide information about your financial situation, enabling an Insolvency Practice such as ourselves to put together an IVA proposal to your creditors. This proposal must be carefully considered to show your affordability. An IVA will allow you to protect your assets, provide legal protection against creditor action, such as bailiffs, and help you become debt-free.
How we can help
If you are looking to enter an IVA, you should speak to our advisors free of charge to start the application process. Our dedicated team are here to help you find the right solution to your debt problem. Your advisor will provide you with easy to understand, actionable advice to ensure you are clear on what solutions will best serve your situation.
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