Self employed IVA
“self employed IVA” is a popular search term because there is so much confusion over this debt solution.
As you may have found out already, IVA stands for Individual Voluntary Arrangement and it is one of the most widely used debt solutions in the UK as it offers you an opportunity of getting your debts under control and avoiding bankruptcy.
Being self employed has always presented issues for those raising finance and sorting out debt problems due to assumed unpredicatability of income. However there is a self employed IVA.
To to eligible for an self employed IVA you have to have debts of £15,000 or more, owe more than 3 creditors money and be able to afford to repay 25% of more of your debt back over 5 years, although on average people pay back 50% of their debts.
Applying for an IVA
If you apply for an IVA, make sure you use a company offering a free IVA. To help we have reviewed most of the best IVA companies in the UK and their comparison forms part of the advice service that is accessed via our charity debt advisors on the number above.
Summary
- 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 |
