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IVA debt solution

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 charity advisors. They are experts in assessing whether an IVA is the best solution for you and helping you organise one if that’s what you want.

Summary

What is an IVA

  • Introduced by the Government in 1986 as an alternative to bankruptcy
  • Typically, you need to owe more than £15,000 and have something to offer to your creditors each month
  • 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 may be required to release any equity you have
  • Someone enters an IVA in England and Wales every 13 minutes
  • We only recommend organisations that have a track record of getting IVA’s accepted by creditors and don’t charge upfront fees

Comparison Table Of Debt Solutions

Solutions Debts Written Off Legally Binding Interests & Charges Residential Status Fees Notes
IVA Yes – Average 58% Yes Stopped Tenant or Homeowner (Eng/Wales) Yes on average around 20% of the payments you make to creditors Typically you must have debts over £15,000 and be able to offer yourcreditors about 20% of the value of the debt back over 5 years.
Debt Management No No Many Freeze Tenant or Homeowner Yes In a Debt Management Plan, you will be required to repay all of your debt in full.
Consolidation No yes New Rates & Charges Tenant or Homeowner Yes Consolidating your debts generally means you’ll pay more back over a longer period of time.
Bankruptcy yes yes Stopped Tenant or Homeowner (Eng/Wales) Yes – up to £700 depending on your circumstances. You may also be subject to a 3 year Income Payments You need to think carefully about all the affect bankruptcy will have on your home and your employment.
Debt Relief Order yes yes Stopped Tenant Yes – £90 You must have debts under £15,000 and have little in the way of assets

 

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Our team of specially trained consultants can advise you on the best debt solution based on your current situation. For confidential advice Just fill in the form below and one of our team will call you back




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