All about IVAs
Apply for IVA help
To apply for an IVA, start by talking to us about your finances.
To find out if you could enjoy the following benefits, please fill in your details below and we'll call you back. With an IVA you could:
- Repay your unsecured debts and avoid bankruptcy. You'll need to stick to your side of the agreement to get the benefits of an IVA - you could be made bankrupt if it fails.
- Have one repayment tailored to your circumstances. It'll be set at a level you can afford, but your lenders will expect you to cut back if they think you're spending too much on non-essentials.
- Freeze interest and charges. Your IVA will only include your unsecured debts - you'll need to handle secured debts (like your mortgage) yourself.
- Have us deal with your creditors on your behalf. Your IVA will need approval from lenders who 'own' 75% of your debt for it to go ahead.
Is an IVA right for me?
Firstly, please tell us a few details about your situation:
Why should I apply for an IVA?
If you're struggling with a large amount of unsecured debt, an IVA is a helpful alternative to bankruptcy that could see you clear your unsecured debts after only five years. However, it will have a serious impact on your credit rating for at least six years from the day it starts, and it'll appear in the Individual Insolvency Register, which is publicly available.
One affordable monthly payment
If enough of your unsecured lenders agree to the proposed terms, your IVA can start - and you'll start making one payment per month that is set at a level you can afford. Entering into an IVA can dramatically reduce the amount you have to pay every month, compared with what you are paying now, as long as your lenders can see you're paying as much as you can afford.
When your IVA payments are decided, an Insolvency Practitioner takes into account the other things you have to pay for every month, like your rent or mortgage, your utilities and food. So your payments would only ever be set at an affordable level - although failing to meet your IVA payments puts you at risk of bankruptcy, they should leave you with enough for your essential bills.
Once your IVA reaches a successful conclusion, the unsecured debt included in your IVA that you cannot afford is written off.
Do I qualify for an IVA?Writes off part of the debt
An IVA can write off part of your unsecured debts, as long as you repay whatever you can afford. And as long as the lenders that own 75% of your unsecured debt agree to it in the first place. Homeowners can be asked to release equity in their homes during an IVA, but if that's not an option for you, you could still apply for an IVA.
Releasing equity might sound like a bad thing, but it could help you to remain in your home. Just be aware that being in an IVA can make it harder to find a new mortgage, and might mean you pay a higher interest rate if you do. If remortgaging isn't possible, you could still complete your IVA successfully by making payments for a further 12 months. And whatever arrangement you make, you should get to stay in your home - as long as you keep up your mortgage payments.
Stops demands from lenders
If your lenders are 'chasing' you for payment, it can be intimidating. If you don't want to deal with your lenders directly anymore, entering into an IVA can help. During an IVA, a team of specialists take over contact with your lenders, so they should stop contacting you. There is no guarantee that your lenders will agree to an IVA arrangement, but we will talk to them for you and present them with an IVA proposal that shows how we think it should work out.
If you receive any letters from your lender, just forward them to us, in the prepaid envelopes we provide, and we will reply on your behalf. It's very important that you do this, as ignoring letters from lenders could result in further costs or legal action against you. If you receive any phone calls from your lenders, just refer them to us. Give them our telephone number and the name of the person taking care of you and we'll do the rest.
An IVA is also an alternative to bankruptcy. So, if you're concerned that your lenders might want to make you bankrupt, entering into an IVA can help you avoid bankruptcy altogether - although should your IVA fail, this could lead to bankruptcy. Find out more about the difference between IVAs and bankruptcy here.
To find other sources of free advice visit Money Helper. It's here to listen and give free, impartial, trusted guidance. Based around you and backed by government.
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Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA, alternative solutions may be offered. If your IVA fails, it could lead to Bankruptcy. Your ability to obtain credit will be affected for at least 6 years. Homeowners may be required to release the equity in their property.