Will an IVA make me debt free?
Understanding how an IVA works
We receive a lot of calls and emails from the public asking; "Will an IVA make me debt free (subject to terms and conditions)?”
We receive 1000’s of calls from clients wanting information on how to become debt free (subject to terms and conditions). Some choose an IVA and some opt for bankruptcy. There are several debt solutions available in the UK. The key to really becoming debt free (subject to terms and conditions) is making sure that whatever debt free (subject to terms and conditions) solution you choose you will need to be confident and motivated to become debt free (subject to terms and conditions).
Please note that for consumers considering an Individual Voluntary Arrangement (IVA) or Protected that although the consumer may become debt free at the end of the Bankruptcy, IVA or PTD period, the effect on their credit rating is likely to remain on file for 6 years. In addition the consumers / debtors name, address and birth date will become public knowledge on the governments “Individual Insolvency Register”. The individual insolvency register (insolvency.gov.uk/eiir/) allows anyone to check, quickly and easily, if someone is bankrupt or has taken out an "individual voluntary arrangement" (IVA).
To first understand if an IVA will make you debt free (subject to terms and conditions) you must first understand what is an IVA is:-
An IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.
After an IVA is successfully completed you can certainly be debt free (subject to terms and conditions). The only way to guarantee an IVA making you debt free is to comply with the terms of the IVA and to meet the monthly payments. Not doing so will cause the IVA to fail.
An IVA will help you become debt free (subject to terms and conditions):-
- Please see the IVA Information centre as it will provide more information in answering the question, How will an IVA make me debt free. It will provide an IVA Overview and advice on starting an IVA
- The IVA Monthly Payment will be set at an affordable monthly amount enabling you to become debt free (subject to terms and conditions).
- An IVA does have Pros and Cons but the end result is it will make you debt free.
- Please read the IVA FAQs - Frequently Asked Questions as it will help you answer the question, will an IVA make me debt free (subject to terms and conditions).
- The IVA procedure is very detailed but used correctly it will make you debt free (subject to terms and conditions).
Key components for a successful IVA to allow you to become debt free (subject to terms and conditions):-
- The IVA must offer a higher return to creditors than could otherwise be expected were the Debtor to be made bankrupt.
- An honest declaration of your assets and/or anticipated future earnings should be made. Material or false declarations are likely to result in the subsequent failure of the IVA.
You can get access to our Freephone Debt Helpline on 0800 074 6918 and get best advice today by calling the IVA team. The advisers will provide advice on IVA’s and other debt solutions on 0800 074 6918. Money Advice Direct are specialists in helping clients become debt free (subject to terms and conditions). To help you understand "Will an IVA make me debt free" then 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...]