IVA Company
Get out of debt and keep your home with an IVA Company
An Individual Voluntary Arrangement, or IVA, is a binding agreement between you and your creditors in which you agree to make manageable payments every month, usually over a period of five years. After the IVA is completed, you will be free from unsecured debt.
In terms of peace of mind, one benefit of using an IVA company is that it is the Supervisor’s duty to deal with creditors so you won’t be plagued by phone calls and letters from debt collection agencies. You also know precisely what your payment obligations will be for the five year life of the IVA.
If you own your own home, you will need to pay a percentage of the equity into the IVA. Credit card companies generally demand 75% of any equity be paid into the IVA. This amount is typically paid in the last two years of your IVA, when you are expected to be in a position to re-mortgage your home. The IVA payment plan will be based on what you can afford to pay each month, after taking your mortgage payments into account, so it usually means a substantial portion of your debts are written off.
Generally, your employer does not need to know that you are in an IVA, unless they are a creditor. However, certain professional bodies require you to notify them of your intention to apply for an IVA.
An IVA is not announced in either the local newspapers or the London Gazette. An IVA must be registered with the Department of Trade and Industry, so your entry could be found in DTI records. IVA records are also available on the Insolvency Service Website.
Typically, you would need debts in excess of £18,000 and be able to make a monthly contribution of at least £200 for an IVA to work. Creditors generally expect you to have at least three other creditors before they will approve your IVA proposal.
For more information, visit our Bankruptcy Questions and Answers page, or call us on 0800 917 3328 and speak to one of our experienced advisors.
