We know that when you are searching for answers to your financial challenges, the last thing you want to worry about is spending more money. That is why we offer free confidential advice to customers who are thinking about applying for an IVA. You are under no obligation if you accept a consultation; there are no strings attached.
What is an IVA?
An individual voluntary arrangement, or IVA, is one of the most widely recommended debt solutions for consumers in England, Wales, or North Ireland. It is not the best choice for every consumer, but it is an excellent fit in most situations. This is a formal debt solution, which means it is legally binding for you and your creditors.
What Happens When You Enter Into an IVA?
If you apply for an IVA and your creditors approve the plan, you will have a chance to catch up on the debts that you owe. You will make monthly payments you can afford after your routine monthly bills are accounted for. You will make these payments for a period of five to six years. After that time period is complete, your remaining eligible debts will be written off. This allows you to get a fresh start. For the plan to go into effect, at least 75% of your creditors need to approve it.
- You pay only what you can afford after regular expenses. That means you no longer need to debate whether to catch up on your credit card bills or pay for heat or electricity.
- The IVA lasts for a finite, concrete period of five to six years. Once it is over, you are released from most of your remaining debts.
- You have the option of paying a lump sum toward your debts. An IVA is also flexible and may be adjusted to changes in your income (up or down).
- Your creditors can no longer take legal action against you or harass you.
- You can stay in your home.
- You may need to remortgage your home. This could result in a situation where you are saddled with a higher interest rate.
- Your credit rating will take a hit (but eventually it will correct again since your situation will be improving).
- Your name and IVA will be recorded in the public Individual Insolvency Register. Depending on what line of work you are in, this could adversely impact your professional standing.
- You will be restricted in terms of taking on new credit or loans (which you probably are anyway).
- If an IVA fails, your creditors may end up back-dating the interest on the money you owe them.
Even though there are risks involved with an IVA, in many cases those risks are offset by the long-term benefits. In some situations, they may not be all that relevant. Your credit taking a hit is pretty immaterial if your credit rating is already terrible.
You do need to have some form of regular, reliable income in order to successfully apply for an IVA. If you do not have some form of steady income, bankruptcy may be a more appropriate debt solution.
How Do I Get Free IVA Advice?
If you have been looking up information on IVAs and searching for someone who can help you to figure out if this is the right debt solution for you, you probably have discovered that the world of consumer debt solutions is pretty challenging to navigate. There are many shady companies out there that charge an arm and a leg just for a consultation. And even if they do not, they may aggressively push an IVA on every customer, whether it is the ideal debt solution or not.
Here at IVA Plan, we always put the best interests of every individual customer first. Our goal is not to sell you an IVA; it is to help you find the best debt solution for your circumstances. That may be an IVA, or it may be bankruptcy or another solution depending on your situation.
When you give us a call, we will set up a free confidential consultation to discuss your debt problems in-depth. Bring us paperwork which proves your financial situation, including your income, debts, and monthly expenses. We will analyse your situation and help you figure out whether an IVA may be right for you. We will patiently listen and address any questions or concerns you may have. If an IVA is the right choice for you and you are comfortable pursuing the arrangement, we will take the next steps and help you apply.
You are under no commitment when you schedule a consultation. It is up to you what you wish to do next; we are here to support you every step of the way!