Frequently Asked Questions
IVA FAQs
If you are struggling with debts of more than £6,000 than an IVA could be good for you, you can find answers below to common questions asked below but it is important you get free professional debt advice which our team can answer any questions for you.
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to pay what you can afford normally over a five year (60 month) and the rest of the debts you do not repay is legally written off.
You need to owe at least £6,000 and be able to afford at least £100 or more.
You can find more on an IVA by clicking here
An IVA typically lasts five years, if it was going to last any longer this is normally proposed at the start before your plan is approved.
Yes, an IVA will go on your credit file as a public notice for six years like any default or public notice on your credit file.
A solution like an IVA is for people who are struggling with debt and not just a debt write off tool.
No, in Scotland the equivilant to an IVA is called a Protected Trust Deed, you can learn more on a Protected Trust Deed by clicking here
No, if you take an IVA through The Debt Helpline we will gather information and supporting documentation from you and once you feel happy to proceed you will sign your proposal and we will do the rest, including contacting your creditors and dealing with them for you until your plan is finished.
How much you can write off in an IVA depends on how much disposable income you have.
Once we calculate your income and expenditure this will leave an amount you have left to pay to creditors each month and should you meet the criteria that will then determine the amount you could write off with an IVA.
Should you come into excess funds during your plan you would be expected to pay these into your plan.
Yes! Once approved any legal action from your creditors will be stopped including any Bailiff action from debts included in your plan.
Yes! It is common for homeowners to take an IVA as being a homeowner can limit the solutions available when struggling with unsecured debts, you can also remortgage with the same mortgage lender during your plan and after your plan is finished you can look to the open market for mortgage renewals.
If you have more equity in your home than unsecured debt you want to include into your IVA then you may not meet the criteria for an IVA, please speak with one of our team for free professional debt advice to establish your options.
Yes! If you have a vehicle on hire purchase or PCP finance you would continue paying this along side your IVA to allow you to get from A to B whilst on your debt free journey.
If you do not qualify or wish to choose an IVA when selecting a debt solution you could also look at;
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To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.