Free IVA

A "Free IVA" is what most good IVA companies promise, and they are sort of right. Sort of, because the money your IVA company and Insolvency Practitioner need to pay their bills is coming out of your new lower repayments. This means not all of your lower monthly repayment is going to your creditors as they have agreed the case management fee.

Because the process of getting you to a stage to where all the paperwork is in place and there can be a 'meeting of creditors' to agree or decline your IVA proposal takes time and investment, some less reputable companies try and charge for the application process. It's our advice that you stay away from these IVA companies. The good ones don't charge as they select people who are likely to be successful in getting the IVA accepted because it was the best solution for the individual and the creditors.

Our charity advisors will ensure that if I IVA is best for you, you get to apply for an IVA via one of the UK's best IVA companies.

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