If you are thinking that you want to apply for an IVA, you will more than likely be struggling with some form of debt and want an IVA plan setting up.
To apply for an IVA, the first thing you should do is speak to a professional debt advisor on the solutions available to you and to ensure an IVA is the best plan forward.
Where Can I Start My IVA Application?
There are a number of IVA companies out there who will happily speak to you and see if it is a suitable option for you. All you have to do is google ‘Setup an IVA’ and a number of IVA sites will appear. There are also charity debt companies such as the debt foundation.
Below is a list of some reputable sites you can make an IVA application through :
The initial advice is free and will provide you with a good understanding on whether an IVA is right for you. This will typically take 20 – 30 minutes. You will want to ensure you can consistently afford the monthly payment into an IVA during the course of the 5/6 year plan. You will be under no obligation to proceed if you don’t feel it is the correct debt solution for you. It is an informal chat and all conversations should be kept confidential.
To have an understanding of your financial situation, you will need to provide information on your income and monthly outgoings and the outstanding balances on your debts. This will allow a debt advisor to build up a financial picture and asses your affordability towards an IVA. Once done they will either confirm an IVA as appropriate or offer alternative solutions.
Do I Qualify For An IVA
To Qualify for an IVA you will typically need to:
- Be struggling with your current unsecured debts
- Have more than £6,000 of unsecured debt
- Be able to afford £100 or more towards your IVA
- Have 2 or more creditors
If you feel an IVA is the solution for you and you have provided all the necessary information an Insolvency Practitioner will draft a proposal and present it to your creditors at a creditors meeting. This proposal will demonstrate your affordability to pay back your debts and return to creditors.
How An IVA Works
To be accepted for an IVA, at least 75% of your creditors who vote will have to accept the proposal. Once 75% or more have accepted, all creditors will have to accept the IVA proposal even if some of your creditors originally objected the proposal.
Following the creditors meeting, provided its been approved, the IVA comes into effect and you will start paying back your debts in monthly instalments. Your Insolvency Practitioner will act as the supervisor to the IVA and distribute your monthly payments to your creditors.
At the end of your 5/6 years, any remaining balance on your debts will be written off. You will be provided will all the information on how long your IVA will last, how much your monthly payments will be, how much will be written off, the fees involved etc before you begin your IVA plan.
You should note an IVA is a formal debt plan and breaking the agreement will have a negative impact on your financial situation and could lead to bankruptcy.