Why choose an IVA?
Reasons for choosing an IVA
We receive a lot of calls and emails from the public asking; "why choose an IVA?"
This section of the website is aimed at people in debt deciding whether to choose an IVA a possible solution to solve their debt problems. To support your decision, a range of IVA guides, budgeting tools and information are available to download. Additional guidance, lessons learned and frequently asked questions about IVAs are also available to help potential IVA clients both understand the IVA system and use choose the route right course of action for them.
Reasons why people choose an IVA?
- An IVA is private so your friends and family will not find out about it. The pros of this is that there is not social stigma with an IVA.
- After an IVA is completed you are debt free.
- An IVA acts as a safeguard to losing your home.
- A person subject to an IVA can continue to have a current account. Please note the person will not be allowed an overdraft facility though.
- An IVA will have a person debt free in up to 5 years.
- Up to 75% of your debt can be written off in an IVA
- With an IVA you only pay back what you can afford.
- With an IVA your creditors can not contact you.
- An IVA provides protection from court action.
- An IVA will stop the creditors making demands
- An IVA will help repair a person’s credit rating.
- A major pro of an IVA is your name will not appear in the local paper. This differs from bankruptcy where it is a legal requirement.
- A business owner can continue to trade with an IVA
- There is no publicity with an IVA
- You have more say in the choice of assets made available to the creditors in an IVA.
- There are higher dividends to creditors with an IVA.
- You can continue to work in the financial sector (FSA) or HM Armed Forces / Police Force with an IVA, where in bankruptcy this would not be possible.
- You can continue to be a company director with an IVA. In bankruptcy you cannot.
- There is no professional disqualification with an IVA.
- You can continue to hold public office positions with an IVA.
- The costs of an IVA are lower than bankruptcy.
- You keep your assets in an IVA.
- The creditors prefer IVAs because they can claim tax relief against bad debts.
- Creditors who do not vote for an IVA are still bound by the IVA. This is law.
Why should you choose an IVA?
An IVA will take the group of debts that you owe and consolidate them all into one, wiping off up to 75% of your debts. Once you have chosen an IVA, you start making only one affordable monthly payment when compared to the several you have been making so far. When you an IVA you guarantee yourself smaller monthly payments, a better cash flow and you also save yourself from bankruptcy.
Why should I choose The UK Insolvency Helpline to help clear my debt?
The UK Insolvency Helpline take debt problems very seriously. When dealing with debt problems. We have several debt options for you to chose from, including; IVA, debt consolidation loans, Protected Trust Deeds, Bankruptcy, or general debt advising. We are independent, approved by many advice centre’s and only offer best advice. The debt support unit carry a detailed personal credit review on your finances and recommend the best route for you to take with no cost and no obligation.
The UK Insolvency Helpline IVA unit helps you choose your options in total comfort and privacy of your home or office. Our skilled advisors will ease all your debt burdens with an IVA. If you wish to discuss the why choose an IVA - Individual Voluntary Arrangement 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...]