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Individual Voluntary Arrangement: IVA Advice

An Individual Voluntary Arrangement can sometimes be referred to as just a Voluntary Arrangement or simply shortened to ‘IVA’.

The IVA is a formal agreement made with your creditors to make a single, reduced payment each month. This lasts for a set period of time agreed by both parties - usually 60 months. Once the IVA is in place, creditors are not legally allowed to add interest or charges to your accounts.

The IVA payments are set at outset of the arrangement, meaning that creditors cannot randomly demand changes. Ongoing Individual Voluntary Arrangement payments are subject to your personal circumstances, as such allowing you to pay off an affordable portion of debt with every month.

Upon successful completion of the IVA, any outstanding debt that is included in the Individual Voluntary Arrangement is completely written off. At Blair Endersby we work with carefully selected licensed Insolvency Practitioners who will contact your creditors to help establish a level of debt repayment you can afford to pay off.

Take the Express Debt Test today using our express test form on the right or to see if a UK IVA could benefit you, call 0800 096 1711.

What are the benefits of an Individual Voluntary Arrangement?

• A single, monthly affordable payment that is fair to both you and your creditors.
• A fixed repayment period (normally no more than 60 months*) with a specific end date.
• An agreement that your creditors freeze all further interest and charges, so your debt does not increase.
• Once the final payment is made and the terms of the IVA have been adhered to, any outstanding debt is legally written off by the creditors. Creditors cannot go back on the agreement and demand increased payments.
• Protection from court action by creditors.
• The Individual Voluntary Arrangement is discreet and can be used by professionals, forces personnel and police without damaging career prospects, though we would recommend you checking your contract of employment.
 

IVA Advice

Speak to our expert advisors today on 0800 096 1711 for IVA advice and information on the IVA process. Or you can use our express debt test now to set yourself on the path to stress free finances.

We work with an external team of licensed Insolvency Practitioners who will progress your IVA proposal. Blair Endersby Limited is part of the Paymex Limited Group of companies. 

Should the Insolvency Practitioner decide that you have a potentially viable they will provide you with an IVA Proposal, which will contain details of the fees for the IVA. Please see Key Information and Fee information below.

Important: Key Information and Fees – IVA

For Blair Endersby to provide the IVA Advisory Service, there will be a Service fee. This is calculated from the financial information provided to us in the application process and is broadly equivalent to 2 months of your calculated disposable income.

This payment will be used to help cover our costs in assessing your financial position, reviewing your documentation, for our professional services and for passing your case to the Insolvency Practitioner. The IVA Advisory Service fee is retained by us and will not be allocated towards your IVA or paid to your creditors and can be paid in two separate instalments. A copy of our IVA Advisory Service Terms & Conditions can be viewed here.

Once your case is passed across to an appointed Insolvency Practitioner, all the costs associated with your IVA (as relevant) are included in the payments you make in to it.

You will be informed separately in the IVA proposal from the chosen Insolvency Practitioner of the proposed fees, tailored to your personal circumstances before you have to committ to an IVA. IVA fees are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are included as part of your monthly contributions.

We cannot guarantee that your IVA proposal, as drafted by the Insolvency Practitioner (as relevant) will be accepted by your creditors. For an IVA to be approved and interest and charges to be frozen it needs to be accepted by 75% of the creditors (by value).

Although you may become debt free upon successful completion of the IVA, a record of your IVA will be held on your credit file for up to six years, which will affect your credit rating and your ability to obtain credit in the future. Once an IVA is approved by your creditors it is listed publicly on the Individual Insolvency Register. Homeowners may be required to re-mortgage after 4 years and release available equity to pay off some or all of the debt. Alternative solutions may be offered.

You must continue to make payments in full towards any rent or mortgage, hire purchase agreements, any loan secured against property, council tax and utilities such as gas, electricity and water. However, an Insolvency Practitioner will make suitable allowances for you to be able to afford your priority debts and your day-to-day living costs before they calculate how much you can afford to pay towards your other creditors. Your Insolvency Practitioner will refer to the Consumer Credit Counselling Services (CCCS) or other guidelines as a benchmark as to what is fair and reasonable to allow as expenditure against income. Whilst your IVA proposal will be based upon your own circumstances, in some cases your creditors may request you apply limits to certain items of expenditure in order to accept your IVA proposal.

Debt write off applies only where an Individual Voluntary Arrangement is suitable, adhered to and usually at the end of 60 months. Only unsecured debts included within the IVA may be written off at the end of the period and those not included, such as secured debts, Government fines and child support payments will remain.

Within the IVA proposal in line with Consumer Protection (Distance Selling) Regulations you will have a seven day cooling off period from the date you sign and return the proposal to the Insolvency Practitioner. Please note that Individual Voluntary Arrangements are legally binding arrangements and once approved by your creditors do not have a cooling off period. If an IVA fails you will be liable for the balance of the debt and fees and this could lead to bankruptcy.

We aim to provide a professional service at all times. However, if you are unhappy with the service that you have received, please follow our complaints procedure explaining why you feel we have not met your expectations.

 Please contact us to discuss your situation in order that we can help ensure you have the right solution for your circumstances. You can also view a free publication from The Insolvency Service ‘In Debt? Dealing With Your Creditors’ which provides an overview of some of the debt solutions that may be available. There is also a free publication from the Accountants in Bankruptcy for those who reside in Scotland 'Debt and the Consequences’.

 







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IVA Breakdown

* All our products and services are subject to status and acceptance and Terms and Conditions apply. Debt write-off applies only to debts included in the IVA, where an IVA is approved by creditors, adhered to and usually at the end of 60 months. Percentage debt write-off and monthly payments will depend upon individual circumstances. Failure to adhere to an IVA can result in bankruptcy. An IVA will affect your credit rating for up to 72 months after completion. Fees payable out of your contributions to your IVA before creditors receive payment and will be notified in advance. Homeowners may be required to remortgage after 4 years. Your ability to obtain credit will be affected in the short to medium term. Fees apply. Calls may be recorded and monitored for quality assurance. To protect our clients confidentiality, their names, ages and occupations have been changed, and actors photographs have been used. Alternative solutions may be offered. If the solution provided involves repaying the debts over a longer period and interest and charges are not frozen then it may increase the total amount to be repaid.
* Blair Endersby Ltd: Registered Office Address: 8 St John Street, Manchester, M3 4DU. Registered in England and Wales: 3849301: Consumer Credit Licence Number:480389, VAT Registration:927234914: Data Protection Registration No Z8891939:  – Blair Endersby is part of the Paymex Group.
Blair Endersby is a sister company of Baines and Ernst Debt Solutions Specialists

† Calls are free if made from a BT landline. Calls made from mobiles and other networks may be charged. Please check with your service provider. Mobile phone users may find it cheaper to call 0161 656 7702.