IVA approved!

MCBIRNIE25

Individual Voluntary Arrangement (IVA).
Debt Guide: For debts over £15,000.
Pay Guide: Minimum monthly payment at least £250.
An IVA is a legal process introduced in 1986 as part of the insolvency act that allows a person struggling with debt the opportunity to make a formal proposal to their creditors in order to clear their debt. The purpose of an IVA proposal is to demonstrate to creditors that it would be of greater benefit to themselves and the debtor, in comparison to the debtor being made bankrupt. A creditors meeting is held and if the proposals being made are accepted by the required majority of creditors then they become legally binding on all creditors notified of the proposal. Once accepted, creditors have no alternative but to stop any further interest and charges accruing on the outstanding debts. The benefits of an IVA are...

You're GUARANTEED debt free in 60 months
It wipes up to 75% off all un-secured debt
It allows one affordable monthly payment
All interest FROZEN and charges STOPPED
Tenants & Homeowners are able to apply
It relieves pressure and you regain control


Upon the successful completion of the IVA the debtor will be considered debt free even though they may not have actually paid off all of their debts in full. Any outstanding balances are written off (known as a composition of debts) and the debtor is then free to make a fresh financial start...Learn more
Phone CCCS address on this site.

beckystar2

Can I ask who you got your IVA with?

notmyrealusername

beckystar2

I went through Payplan, they have a sister company The Payplan Partnership. Can highly recommend them.

skintasusual

has anyone ever been refused an IVA?

I read that there are a lot of charges involved with an IVA - how do i pay these if I can't afford them!!

I just started on a DMP with baines and ernst (regret it already)

I have 27000 debt, am paying 272 to B&E, could prob afford a bit more maybe 300....

do you think an IVA would be viable for me?

james32_uk

IVAs are definately not the right way to go for many people. Beware companies who push you down this route as IVAs make them lots of money. Speak to CCCS (who do not do IVAs but will recommend them if they are right for your situation) or Payplan who will recommend your best options and can also do an IVA if you want. IVAs attract charges from £5k upwards and are included in your IVA repayment schedule.

james32_uk

Skint, ditch B&E asap. CCCS or Payplan will do the same service and not charge you for your DMP.

james32_uk

IVA have to be accepted by at least 70% of balance owed by creditors. These days its getting tougher to get on them without a decent repayment %. HSBC now want 40% minimum so I hear!

See my post here about how it worked for me. http://forums.moneysavingexpert.com/showthread.html?t=237135

notmyrealusername

EDIT - James snuck in while I was typing!

The fees in an IVA are typically between 6 - 9k. With payplan you pay nothing upfront and if the IVA were to fail (ie not be approved) there is still nothing to pay. Out of the 22,000 I will be paying back over the next five years only 13k goes to the creditors with around 9k in fees to the supervisor of the arrangement.

I cannot stress enough that you should only deal with companies such as CCCS or Payplan as they are non profit making. CCCS do not run IVA's but can put you in touch with a reputable practioner, Payplan have a sister company who run the IVA's.

An IVA is not something to be taken lightly, it is the step before bankruptcy and if you do not keep up the payments in an IVA the supervisor will have little choice but to make you bankrupt. In an IVA your creditors vote whether to accept the proposal, 75% of creditors by value must vote in favour of the IVA for the proposal to be accepted. IVA proposals can be rejected, I know for example HSBC will reject any proposal that gives them less than 35% of the total debt owed, bear in mind that because of the large fees involved the dividend to your creditors is less than you actually pay.

If you give Payplan a call they will go through your financial situation and advise as to whether an IVA would be suitable, even if an IVA is not the best thing for you then you should arrange your DMP through them instead of B & E as with Payplan or CCCS all of your payment goes to the creditors and as such you pay the debt off quicker. B & E take their fee out of your payment so the creditors end up getting less and it will take you longer to become debt free

james32_uk

Took too long!