What is the IVA process?
The IVA Process explained
In this section of IVA guide we will explain two very common questions; "What is the IVA process" and "What is the IVA process like to deal with day to day?"
What is the IVA process?
The IVA process is actually quite detailed. Please beware of IVA salesmen who try and sell IVAs and do not discuss the IVA process in details. It is important to understand exactly what the IVA process is so that potential IVA candidates know how long the IVA setup will be and what it will be like.
- The IVA process begins with a conversation with a member of the IVA team. The IVA team member will go through a budget sheet to work out if you have any spare money left over after all your reasonable living expenses have been paid. This part of the IVA process works out whether the client has any disposable income.
- The next part of the IVA process what need to be done is list out all the IVA allowable debts in a list.
- Once an IVA is deemed suitable then the actual IVA process may begin.
- All account numbers and rough amount for the debt need to be collated.
- A background as to why the client is in debt should also be produced for the creditors.
- All wages slips and identity documents are gathered together.
- The IVA document is posted out to all creditors with the IVA offer explained.
- About 2-3 weeks later an IVA creditors meeting will be set up where the creditors decisions are made clear.
- The IVA process then reaches the acceptance or rejection stages, dependant on what the creditors decide.
What is the IVA process like?
A lot of clients ask the IVA, what is the IVA process like? The point to note that is that because we are led by our best advice guidelines an IVA will only be a route if the IVA team feel the chances of acceptance are high.
Many clients worry non stop for the whole process. The IVA team know what the creditors views are so an IVA will only be recommended if the likelihood of acceptance is high. Living with an IVA means living to a reasonable budget for the IVA period, which can be 1-5 years.
Living with an IVA is exactly the same as living on a budget. An IVA provides a solid framework through which to approach a with a long-term debt condition.
Getting by on an IVA on such little can be hard and occasionally, especially at the end of each month, a little depressing. But it doesn't have to be. Living with an IVA is not as hard as you might think and with a bit of budgeting can be rewarding.
One of the most important things IVA clients learn since living on an IVA there is life after debt. So you see with a little bit of budgeting living with an IVA doesn’t have to be hard.
Advice for clients living with an IVA
- Living with an IVA is easier when you plan your food shop a week ahead and buy foods accordingly.
- Living with an IVA is when you are not tempted to buy unnecessary items.
- Living with an IVA is easier by only pay with cash. This is easier said than done, but if you can’t afford something, save for it.
- Living with an IVA is better if you keep your monthly budget up to date.
- Living with an IVA is easier if you make the most of your income and cutting down on your spending.
- Living with an IVA is made easier by keeping a record of what you spend and check this against your bank statement.
Using the Individual Voluntary Arrangement (IVA) procedure
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health.
This procedure is not to be confused a debt management plane which is an informal procedure.
If you wish to discuss the Individual Voluntary Arrangement (IVA) procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.
IVA Guide
- What does it mean if my IVA is not approved?
- What are my options if my IVA is not approved?
- My IVA has been approved, what do I do next?
- My IVA has been approved subject to modification – what does this mean?
- How do I make my IVA contributions?
- My IVA proposal included the provision that I had to sell/realise other assets – what do I need to do?
- I am receiving letters and emails from companies offering me a better solution than an IVA - what are these solutions?
- What do I do if my monthly IVA contribution will be late?
- How do I deal with my creditors once I’m in an IVA?
- How do I deal with additional creditors now that the IVA has been approved?
- What happens if I miss an IVA payment?
- The bank has not transferred my IVA payment - what do I do?
- What happens if I do not inform my IVA supervisor that I can’t make the contribution?
- I'm struggling to make the monthly IVA payment what should I do?
- I've received a 'Notice of Breach' from my IVA supervisor - what does this mean?
- What happens if I’ve missed IVA payments or received a notice of breach and there is no solution?
- Is it possible to finish or settle my IVA early?
- How do I settle my IVA early?
- What is the process involved when offering an early IVA settlement?
- Why would I vary the terms of my IVA?
- What does the IVA variation process involve?
- What happens when the IVA variation process has been approved by creditors?
- What happens when the IVA variation process has been rejected by creditors?
- How does an IVA end?
- Will I receive any correspondence when my IVA has completed?
- If one of my debts has been excluded from the IVA, am I liable to pay the debt after the IVA has completed?
- When does a creditor debt claim have to be received by when completing an IVA?
- What happens if any additional debt claims is received during the IVA closure process?
- How do my creditors get their money in an IVA and what are the IVA dividends?
- Does the money in my IVA account earn interest and if so where does that interest go to?
- Do I get a report or certificate stating the IVA has been completed?
- How does an IVA fail?
- What is the effect of IVA failure or an IVA failing?
- What happens after an IVA fails?
- What are the costs of an IVA?
- Who pays for my IVA?
- What is the IVA process?
- Who takes care of my creditors?
- Will an IVA make me debt free?
- How an IVA benefits my creditors
- Lifestyle changes during an IVA
- Advice on living with an IVA
- Will creditors contact me?
- Will I my IVA fail?
- Completing an IVA
- Getting credit after an IVA
- Can an IVA make me debt free?
- How to boost my credit rating after an IVA?
- IVA vs debt management
- IVA vs bankruptcy
- IVA vs debt consolidation
- IVA vs administration orders
- IVA pros and cons
- IVA definition
- What is an IVA?
- Why choose an IVA?
- Who is suitable for an IVA?
- IVA benefits
- IVA stages
- False IVA adverts
- IVA compared to Bankruptcy
- IVA compared to debt management
- IVA compared to debt consolidation
- IVA compared to administration orders
- How the IVA got so popular and famous
- Things you should know and do before you start an IVA
- Will an IVA make creditor phone calls stop?
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]