1. How does an IVA work?
2. What are the effects of an IVA?
3. Do all my creditors have to agree to an IVA?
4. How much do I have to pay?
5. What about my house?
6. What if I am unable to make my payments?
7. What happens at the end of the agreement?
8. Why would my creditors accept an IVA?
9. How much does an IVA cost?
10. Do Freeman Jones belong to a professional body?
How does an IVA work?
An Individual Voluntary Arrangement (IVA) could be your best solution if you have a substantial amount of unsecured debt, usually over £15,000.
As a licensed Insolvency Practitioner we negotiate a legally binding agreement between you and your creditors.
You pay an agreed monthly amount for a fixed period of time, usually 5 years and best of all, at the end of the period you can agree to write off the remaining balance, as much as 75% of your debts!
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What are the effects of an IVA?
You will be protected from any legal action being taken against you by your creditors, you can agree a fixed amount to pay back each month. Any interest and charges will normallybe frozen and best of all you can write off up to 75% of the total debt amount. Your credit rating will not be as seriously affected as it would be if you were declared bankrupt.
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Do all my creditors have to agree to an IVA?
To approve your IVA, at least 75 per cent by value of the creditors who vote at a meeting, must accept your proposals. All your creditors will be bound by the agreement as long as it has been accepted by a 75 per cent majority.
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How much do I have to pay?
We will advise you fully about the amount that you should propose to pay into your IVA. In principle, however, the payment will be based on your surplus income after allowing for day to day living expenses of you and your family. Your creditors will usually require that these payments are maintained for five years.
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What about my house?
Unlike bankruptcy, assurances can be agreed to protect the family home.
What if I am unable to make my payments?
We will be in regular contact with you to make sure you’re able to meet your monthly payments. If you find that you are unable to meet your payments, we will try to renegotiate the terms of the agreement with your creditors.
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What happens at the end of the agreement?
As long as the terms of the proposals have been fully carried out, your creditors will have
no further claim against you and the balance of any unpaid debts is written off.
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Why would my creditors accept an IVA?
In accepting an IVA, your creditors will expect to get a better return than they would from
any other reasonable alternative, and your payment proposals should demonstrate this to
be the case. Your creditors will also benefit from the fact that your IVA will be monitored independently.
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How much does an IVA cost?
All the costs associated with your IVA are taken from the payments you make in to it.
You don’t pay anything extra.
At Freeman Jones , we are committed to being totally clear, open and fair to both you and your creditors about our fees and any other costs that may be incurred. We do not pay or receive any undisclosed fees or commission.
We will fully inform you of our proposed fees before you agree to an IVA.
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Do Debt Reducers belong to a professional body?
Our insolvency practitioner is authorised to act by the Insolvency Service (part of the Department of Trade and Industry), and is a member of the Association of Business Recovery Professionals (known as R3). All authorising and professional bodies provide technical, professional and ethical guidelines which have to be followed carefully.
More information is available from the Insolvency Service website at www.insolvency.gov.uk.
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Call today on: 0800 074 4110.
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