Do I need IVA help?For consumers who are struggling to stay afloat amid rising levels of debt, an IVA (Individual Voluntary Arrangement) could very well be the key to avoiding bankruptcy, as well as the financial implications and stigma that come with it. An IVA is a contractual arrangement that is reached between debtors and creditors (those to whom they owe money) as a way to pay back some or all of a person's outstanding debt over a period of time.
Established under the Insolvency Act 1986, the agreements must be prepared and presented to creditors by a licensed insolvency practitioner, meaning that gathering as much
IVA information as possible is crucial for anyone considering it as a means of overcoming their spiralling debts.
The beauty of an IVA is that it is usually in both parties' interest to accept the terms - for those in debt, it provides a route out of financial trouble that allows for reduced repayment levels and doesn't rely on bankruptcy, while also offering people more power over how assets (such as their homes) are dealt with. Creditors, meanwhile, will often receive more money in the long run than they would through a conventional bankruptcy.
As it is a legally binding agreement specialised for people in financial difficulty, the terms of the monthly repayments tend to be much more manageable and significant sums of outstanding debt can often be written off.
What can IVA specialists do for me?Money Debt and Credit is an
IVA company that specialises in providing debt management and
IVA advice. It boasts a number of trained advisors who will be able to offer free initial guidance and oversee the entire process of establishing an agreement.
As a general rule, anyone with a minimum debt of £15,000 and three or more creditors who is capable of paying back a fee in the region of £200 per month could qualify to have an agreement drawn up; Money Debt and Credit's team of IVA specialists will be able to sort through an individual's precise circumstances.
Once they have agreed a repayment amount and an IVA solution has been drawn up, people in debt will then be granted an Interim Order, meaning that creditors cannot take legal action against them while they consider the terms of the agreement. As it can take several months for the
IVA process to be completed, this protection can be invaluable at a time when people are at their most vulnerable.
Are there any upfront IVA costs?Debtors will not need to pay any up-front costs to Money Debt and Credit in order to have their IVA set up, although there are fees attached to the arrangements. These are split into two areas, nominees' fees and supervisors' fees. The nominee is the IVA specialist taking care of the paperwork for the proposal, whose costs include gathering information, preparing documentation, sending it to all involved parties and holding a meeting of creditors. Once an IVA is approved, the nominee will become the supervisor, although all estimated costs must be included in the original proposal.
Those wary of the costs involved can take advantage of the
free IVA advice on offer by Money Debt and Credit's team of experts, safe in the knowledge they will be made fully aware of any costs associated with an agreement before signing their name to it.
Is a debt management plan an option?IVAs can be an attractive proposition to people struggling financially, helping them to clear debts they would otherwise not be able to cope with. However, for those who do not qualify for such a solution - for instance if they have debts of less than £15,000 - a debt management plan is an alternative solution that can help them to better manage their finances. Money Debt and Credit can help you set up such a plan, meeting with creditors to restructure monthly repayments to an affordable amount. Debt management solutions can also include frozen interest rates, and payment holidays for those struggling to meet the terms of their current loan repayments, although these are not guaranteed.
In the meantime, more information about the various types of insolvency and the differences between bankruptcy and IVAs can be found at
The Insolvency Service, the government office responsible for ensuring the framework of the Insolvency Acts 1986 and 2000 and regulating the insolvency profession.
Insolvency Practitioners at Money Debt and Credit Ltd act without any personal liability
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ