Our calculator will help you to decide whether an IVA is right for you.
An IVA company specialises in helping people who have got themselves into considerable debts from various lenders and are no longer able to make their repayments. An IVA agreement legally binds you and your creditors together to make the debts more manageable and to customise the repayment plan fitting with your particular circumstances. This article has been written to give you some useful IVA information that you should know before you enter into an IVA agreement.
Eligibility: You can make an IVA proposal if you are sole trader, partner or a private individual with more than £18,000 debts due to at least 3 creditors. If you have tried all other ways of managing debts and failed and you want to avoid bankruptcy, it may be time to speak to an IVA company.
Monthly payments: The monthly payments that you will have to make into an IVA are based on your Income and Expenditure. This provides a repayment figure after taking into account day-to-day expenses and secured debt repayments.
Term of IVA: When a person enters into IVA agreement, the creditors agree to write off any remaining debts after the IVA is complete. An IVA usually lasts for 5 years, although this can vary based on your level of debt and individual circumstances.
Additional credit: Once your IVA has been accepted by the creditors, debtors are not allowed to obtain additional credit without the approval of the IVA supervisor until the IVA is completed.
House and assets: As far as you follow the rules and terms of the IVA agreement, you will not be required to sell out your house or other assets like vehicles. If you have a significant amount of equity in your property, you may be required to remortgage before the end of your IVA to release some of this equity into the IVA.
Changes in IVA: It is necessary that you meet all the terms of the IVA, but in unusual cases like you have fallen ill, you cannot work any longer or you have become redundant, then changes can be made in your IVA agreement if your creditor agrees.
Advantages of IVA: You get rid of your debts, usually within 5 years. Your creditors are not legally allowed to contact you seeking payment or add interest or penalty charges to your debt. In addition to that, the IVA agreement is usually kept secret between the debtors and the creditors, thus your job and reputation are not jeopardised.
This useful IVA information is really helpful for those who are considering entering into an IVA agreement.