Frequently Asked Questions

Q: What is an IVA?

A: An IVA (Individual Voluntary Arrangement) is a legally binding agreement reached between you and your creditors for paying off your debts. In simple terms, your creditors will reduce part of your debts so that you only pay back what you can afford. This involves the freezing of interest on the debt.

Q: Will I qualify for an IVA if I can’t pay off my debts?

A: It is quite possible though not automatic. Send us an enquiry and we will advise you based on your individual situation.

Q: Who can enter into an IVA?

A: Individuals, sole traders or partners who are insolvent and cannot pay their debts can apply for an IVA as long as their disposable income is over £200.

Q: What if my creditors aren’t in favour of the IVA?

A: If your creditors aren’t in favour your Insolvency Practitioner (IP) can renegotiate the terms with them. However, if they still don’t agree you still have the option of bankruptcy or an informal arrangement such as a Debt Management Plan with your creditors.

Q: Will my credit rating be affected?

A: During the five year period of an IVA you would have to cease using payment cards like credit cards, store cards etc. Further, you will not be allowed to take additional unsecured borrowings until the IVA is completed. On successful completion of a five year IVA your credit rating should improve after one year.

Q: Is an IVA made public?

A: IVA details are made public they appear on a public insolvency register. They are not advertised which may be the case in bankruptcy.