For an IVA to come into effect, you need the active participation of a licensed Insolvency Practitioner (IP) to put your proposal forward to and supervise the arrangement. Also, creditors representing 75% of your debt have to vote in favour of the IVA. An IVA is legally binding and as long as you fulfil your side of the arrangement your creditors cannot chase you for payments.
What should I look for in an IVA provider?
If an IVA is the best solution for you we can recommend an IVA provider to you. However, if you wish to try a range of options we suggest that you consider a number of factors before making a decision.
 Reputation: Browse through the Internet and you will come across numerous IVA providers. Then there are those that advertise in print media and also on TV and radio. Before making a decision, you should check the reputation of the company. This could mean studying existing client testimonials, their experience and how many cases they deal with.
Qualified personnel: The IVA provider should employ at least one qualified, licensed Insolvency Practitioner (IP). The role of an IP in the entire proceedings is very significant from helping you draft a fair proposal to negotiating with your creditors for its approval to overseeing that everything is fair to all parties until the IVA reaches its conclusion.
Honest debt advice: The IVA provider should be able to provide you with honest advice in tune with your debt circumstances. If the company specialises in IVAs, it may try to recommend an IVA as the ideal way out. For this reason, it is important to consult a number of companies and study the various options you have before making a commitment. Remember, before approaching a particular service provider it is best practice to seek debt advice to understand the various options you have.
No additional fees: Considering that you are already in debt, an ethical IVA company would not charge you upfront fees. That said, there are fees involved for the writing of the proposal, chairing your creditor’s meeting and running the IVA account for the 5 year term of the contract. Most reputed IVA companies however take their fees from the money you pay into your IVA account before it is distributed to your creditors.
Therefore, it is these companies that you should consider for IVA help.
So whether an IVA is the best option or a Debt Management Plan is a better choice would depend on a number of factors such as your current financial situation, disposable income, arrears and amount of debt. Contact us in confidence and we will be able to recommend a debt solution that is right for you.
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