FAQs
Questions:
- Category 1
- Can a creditor take further recovery action before the IVA is approved?
- Can an individual creditor refuse to accept an IVA?
- Can I cancel the IVA once it is set up?
- Do creditors have to accept an IVA?
- Do I have to be in full time employment?
- Do I have to tell my partner?
- Does it make a difference if I am a homeowner or tenant?
- How are the Insolvency Practitioner's fees collected?
- How do I contact Blair Endersby?
- How long does it take to set up an IVA?
- How long will the IVA last?
- If I already have CCJs against me can I enter an IVA?
- If I am a homeowner, will I have to release equity in my home into the IVA?
- Is an IVA a sort of loan?
- What happens if I just stop paying into the IVA?
- What happens if my circumstances change?
- What happens if the IVA is not approved?
- What is the difference between a secured and unsecured debt?
- When I get an IVA will creditors be able to take further recovery action?
- Will an IVA cover all of my debts?
- Will I be credit checked before acceptance?
- Will interest and other charges be frozen while the IVA is being set up?
- Will the IVA affect my credit rating?
Answers:
- Can a creditor take further recovery action before the IVA is approved?
Yes, but you can apply to the courts for an Interim Order to stop any of your creditors taking further recovery action until the outcome of your creditors meeting is known.
- Can an individual creditor refuse to accept an IVA?
The decision to accept or reject an IVA is made by a vote of your creditors at a creditors meeting. You need to get 75% acceptance by debt value at that meeting for the IVA to go ahead. If less than 75% by debt value vote to accept the IVA, the IVA will fail. Once the IVA has been accepted by vote at the creditors meeting, all creditors are bound by law to accept the arrangement.
- Can I cancel the IVA once it is set up?
First, you'll need to discuss the situation with your insolvency practitioner. Because an IVA is a formal legal agreement, once it is set up, you cannot just cancel it if you change your mind. Failure of an IVA can lead to bankruptcy.
- Do creditors have to accept an IVA?
The decision to accept or reject an IVA is made by a vote of your creditors at a creditors meeting. You need to get 75% acceptance by debt value at that meeting for the IVA to go ahead. If less than 75% by debt value vote to accept the IVA, the IVA will fail.
- Do I have to be in full time employment?
No. You only need to have a surplus of income above what you need to live on to enter into and Individual Voluntary Arrangement (IVA).
- Do I have to tell my partner?
Yes. You will almost certainly have to tell your partner if you are entering into an IVA.
- Does it make a difference if I am a homeowner or tenant?
No. It makes no difference whether you are a tenant or homeowner or even if you are still living with your parents.
- How are the Insolvency Practitioner's fees collected?
The Insolvency Practitioner's fees are collected from the payments you make into the IVA. You will be notified of the fees that apply in advance.
- How do I contact Blair Endersby?
Simply call on 0800 096 1331, use the 30 second debt test or click here to contact us about IVAs online.
- How long does it take to set up an IVA?
Providing everything is standard, it takes typically between 6 and 8 weeks to set up an IVA.
- How long will the IVA last?
This is variable, but it usually lasts for up to 5 years.
- If I already have CCJs against me can I enter an IVA?
Yes. You can avoid further recovery action on your unsecured debts when you enter into an Individual Voluntary Arrangement (IVA) even after a creditor has obtained a CCJ against you.
- If I am a homeowner, will I have to release equity in my home into the IVA?
You may have to release a proportion of any available equity in any property you own as part of your overall contribution to your creditors. This will usually happen after the 3rd year of the IVA.
- Is an IVA a sort of loan?
No. An Individual Voluntary Arrangement (IVA) is a legal process where you agree with your creditors to repay them what you can afford. This sometimes results in you paying back less than you actually owe.
- What happens if I just stop paying into the IVA?
If you fail to keep to the arrangement, your Insolvency Practitioner has the right to apply for you to be declared bankrupt and for your creditors may petition for your bankruptcy.
- What happens if my circumstances change?
If you are unable to maintain repayments because of changed circumstances, your supervisor in the IVA can request a variation to reflect your new circumstances.
- What happens if the IVA is not approved?
You will have to come to an alternative arrangement with you creditors to repay your debts. We may be able to offer you an alternative solution.
- What is the difference between a secured and unsecured debt?
A secured debt is a debt secured against an asset that you own. Typical secured debts will be a mortgage, a secured loan, a car loan, etc. An unsecured loan is any loan not secured on an asset, such as a bank overdraft, a personal loan, a credit card, store card, etc.
- When I get an IVA will creditors be able to take further recovery action?
No. Once the IVA is in place, you are protected from all further recovery action by your unsecured creditors providing you agree to the terms of the arrangement.
- Will an IVA cover all of my debts?
No. An IVA can only cover your unsecured debts and arrears.
- Will I be credit checked before acceptance?
No. You will not be borrowing any money, so there is no need for a credit search.
- Will interest and other charges be frozen while the IVA is being set up?
No, but any such interest and charges will be covered by the IVA when it is approved.
- Will the IVA affect my credit rating?
Be aware that your credit rating will be adversely affected by going into an IVA. It will remain on your credit file up to 6 years after completion.
* Only applicable for an IVA – Terms & Conditions Apply: Debt write off applies only where an Individual Voluntary Arrangement is suitable, adhered to and at the end of 60 months. This relates to unsecured debts that were included with an IVA and does not include any secured debts mortgages, HP or utility bills. Failure to adhere to an IVA can result in bankruptcy. An IVA will affect your credit rating for up to 72 months after completion of your IVA. Fee Payable this is paid out of your monthly contributions to your IVA and will be notified to you in advance. Homeowners may be required to remortgage after 3 years. Alternative solutions may be offered.
* Blair Endersby Ltd: Registered Office Address: City Wharf, New Bailey Street Manchester, M3 5ER. Registered in England and Wales: 3849301: Consumer Credit Licence Number:480389, VAT Registration:855339696: Data Protection Registration No Z8891939: Our Insolvency Practitioners are licensed by the Association of Chartered Certified Accountants.
Blair Endersby- IVA Specialists, IVA Advice