IVA help and advice - please view the topics below

> What is an IVA?

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors. You offer to pay back as much money as you can over a fixed period, normally five years. At the end all outstanding unsecured debt is written off. As soon as the IVA is agreed, all interest is frozen and the creditors cannot contact you again by law. Your point of contact then becomes an Insolvency Practitioner who is the link between you and your creditors. The Insolvency Practitioner will work out how much you can afford to pay each month, and this figure may be adjusted if your circumstances change. Debt Made Simple can provide an excellent Debt Expert and Insolvency Practitioner to set up an IVA for you. The IVA is a 'win-win' solution for you and your creditors. You get to avoid bankruptcy, and the creditors get more money than they would if you went bankrupt. Best of all, you have light at the end of the tunnel. Note: IVAs are not available in Scotland. If you live in Scotland, please visit debt help in Scotland.

> Why will my creditors agree to the IVA?

Because if you went bankrupt they would get even less. As the old saying goes, 'half a loaf of bread is better than nothing at all'. In bankruptcy you make monthly payments for three years whereas the IVA typically lasts for five. So if the creditors accept your IVA they will get two more years of payments. It is an unfortunate fact that sometimes IVAs get rejected. Our job is to make sure that this doesn't happen to you. If it does we will support you to find an alternative - it is often possible to propose the IVA again.

> How does the IVA process work?

If you're interested in the IVA you should contact us so that we can see if you qualify. If you do, your Debt Expert can draft your initial IVA proposal with you over the phone. Then the Insolvency Practitioner will finalize it with you. After that it is sent to the creditors and they are given two weeks to respond. To find out more about the IVA please visit the links in this section, in particular the FAQ.

> 60 monthly payments

-Payments worked out according to your budget, designed to be affordable

-Payments may be raised or lowered if your circumstances change

-After 60 months, anything outstanding is written off

> Keep control of your assets

-Your house will not be repossessed, though you may need to remortgage

-If you are able to remortgage, you can often pay off your IVA early

-Only the most luxurious items may need to be sold - this is unusual

> Protection from creditors

-Creditors cannot contact you by law from the beginning of the IVA

-They can only negotiate with your representative

-Once the IVA is concluded they cannot contact you to renegotiate

> All interest and charges frozen

-As soon as your IVA is agreed,all interest and charges are stopped

-CCJs and Attachment of Earnings are overturned by the IVA

-This results in a saving of all the interest that would have accumulated over the 5 year period

> No job or bank account restrictions

-The IVA allows you to keep your job, even those that would be at risk in bankruptcy

-In the IVA you can hold a normal current account, unlike in bankruptcy

> Completely private and discreet

-Your name is not put in the local newspaper, unlike in bankruptcy

-Your employer is not informed

> Take the first step

Ready to apply? Contact us.