IVA Debt Solution

"IVA Debt Solution" has grown in popularity since 1986 when the Government introduced the IVA.

As you would expect from an official debt solution, the IVA is legally binding and can make what are currently unmanageable debts, manageable. This is done by doing a detailed assessment of your debts, your income and expenditure to work out how much you could afford to repay your creditors every month for 5 years. If that amount is over 25% of you total debt, you're employed or self employed, and owe 3 or more creditors £15,000 or more, there's a chance that an IVA is a debt solution you may want to use.

It's important to know that an IVA is not a debt solution that you can choose. It has to be chosen for you be a debt advisor and proposed to your creditors by an Insolvency Practitioner. They will only do this if it is the best solution for you and your creditors and you are likely to be able to afford the new lower monthly repayment.

To help you discover whether you're likely to qualify for an IVA we recommend you talk to our charity advisors as soon as you can.

Applying for an IVA

To get immediate help now, use our IVA advice service which is accessed via our charity advisors. If it's the right solution for you, they can help organise it for you.


Summary

What is an IVA

  • Introduced by the Government in 1986 as a way of helping individuals not become bankrupt
  • You need to owe more than £15,000 and you or your partner be employed
  • Typically you can write-off 50% - 60% of your debt and pay the balance over 5 years (60 months)
  • Interest and charges stop and creditors can't change their mind
  • Your home is protected but you will be required to release any equity you have any
  • It's a popular debt solution with nearly 40,000 IVA's started in 2008, that's one every 13 minutes
  • We only recommend organisations that have a track record of getting IVA's accepted by creditors and don't charge fees


Comparison Table Of Debt Solutions

  Solutions Debts Written Off Legally Binding Interests & Charges Residential Status  
 
Average 58%*
Yes
Stopped
Tenant or Homeowner (Eng/Wales)
  
 
Not Normally
No
Many Freeze
Tenant or Homeowner
  
 
Consolidated
Yes
New Rates & Charges
Tenant or Homeowner
  
 
Bankruptcy is a severe last resort if you are in serious debt and no other debt solution can save you from going bankrupt. Bankruptcy may protect you from your creditors and allows you to start fresh, but you need to think carefully about all the implications involved.
  
 
*58% was the average debt write off with an IVA, April - June 2008, CCCS
  
     

 

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