IVA FAQs

1. How much will I have to pay?
2. What's the main difference bewteen an IVA and bankruptcy?
3. How do I go about starting an IVA?
4. If I am a homeowner, will I need to sell my property?
5. How much will it cost me to set up the IVA?
6. Will the proposal be accepted?


1. How much will I have to pay?

Your required monthly repayment will depend very much upon your current financial circumstances, ie the money you have coming in and your normal household bills etc. This will only be set at a realistic and afforable level for you because if it is set too high, this will be pointless as you will only run into problems later on. In some cases with homeowners, you may be asked to raise some cash through the equity in your house (if there is any, as there is no guarantee that house prices will not drop in a few years time).
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2. What's the main difference bewteen an IVA and bankruptcy?

An IVA is a private arrangement and will not be splashed over the local newpapers! You're work and home will not be at risk with an IVA either. Bankruptcy is more severe but may be appropriate in some cases. We can advise you on this once we know a bit more about your situation.
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3. How do I go about starting an IVA?

First, you need to tell us a few things about your situation by filling out the IVA enquiry form here. If we feel that it is right for you, we will then send out some more info and some paperwork for you to sign and return to us. We will get all the necessary documentation together and put forward your case on your behalf to the creditors. There is normally a meeting, which you don't need to attend, where your case is considered. Usually, most of the creditors don't bother turning up either and vote by fax or post! Then, if they agree to it, you can go ahead with the IVA if you are happy to do so.
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4. If I am a homeowner, will I need to sell my property?

You will not be required to sell your house! Your home will not be at risk if you enter an IVA. In some cases, clients are asked to release a portion of their equity towards the end of the five year period, if there is any to release of course.
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5. How much will it cost me to set up the IVA?

You will not have to make a large up-front fee! You just make your agreed monthly payments. Our fees are deducted from these payments so you do not have to find any additional cash! This is approved by the creditors.
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6. Will the proposal be accepted?

At the arranged meeting of creditors there is a vote. Normally, it is required that three quarters of them agree to it but it depends on several factors and they may ask for amendments to it. We will keep you up to date with this.
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Are your debts less than £15,000?

Are You A Homeowner?