IVA Guide

At Royal Exchange our aim is to provide comprehensive impartial advice on all aspects of personal debt and its solutions. Read the articles below to find out more about IVA (Individual Voluntary Arrangements) and how they can help you if you are stuggling to keep up with your debt repayments. 

Individual Voluntary Arrangement Basics

 

What is an IVA?

If you are struggling with debt problems an Individual Voluntary Arrangement can be a solution. With an IVA you can reduce your monthly repayments and have up to 70% of your debt written off.

Is an IVA right for me?

If you are experiencing difficulties keeping up with your debt repayments then you may be considering an Individual Voluntary Arrangement. Although they can be a good way to clear your debts, IVAs aren't suitable for everyone so how do you know if an IVA is right for you? 

What are the advantages and benefits of IVAs?

For people with overwhelming debt problems entering into an Individual Voluntary Arrangement can offer a number of advantages over other possible debt solutions. Organising an IVA has benefits for you and in some cases your creditors.

Disadvantages of Individual Voluntary Arrangements

If you are suffering from significant debt problems entering into an IVA can be a great way to clear your debts. They do however have a number of disadvantages and drawbacks that should be taken into account when considering what is the best option for you. 

How long does an IVA last for?

In the majority of cases someone entering into an IVA will make sixty monthly payments meaning the full length of their arrangement is five years from start to finish.

IVA In-depth

 

What documents do I need for an IVA?

Typically when setting up an IVA you will be required to provide several documents. These documents are needed to show what debts you have and also give a full and honest overview of your income and outgoings.

How would an IVA affect my pension?

If you are considering an Individual Voluntary Arrangement as a solution to your debt problems then it is important to consider how it may affect you in the long term. One question we are often asked is what impact, if any, an IVA will have on your pension.

What is the minimum payment in an IVA?

IVAs are flexible agreements in which there is no legal minimum monthly payment. The exact amount you pay each month will depend on how much disposable income you have and how much your creditors are prepared to accept.

Will I have to go to court for an IVA?

To enter into an IVA you will not have to go to court. In most cases your creditors will vote on your IVA proposal via fax or email.

IVA or bankruptcy - which is better for me?

IVAs and bankruptcy are two of the most common personal debt solutions used by people in the UK. If you have significant debts that you can no longer afford to repay then there is a good chance you will be considering one of these two options. So how do you know which is best for you? 

Can I have an IVA if I'm self employed?

For self employed individuals who are struggling with debt or cash flow problems an IVA can be an option. For an Individual Voluntary Arrangement to be suitable you will need to be confident that you are able to commit to making regular payments for the full term of the agreement.

Is an IVA the same as debt management plan?

Individual Voluntary Arrangements and Debt Management Plans are two of the most widely used debt solutions in the UK. Although they have much in common they are not the same thing and which is best will depend on your own financial situation.