My partner and i have nearly £30,000 of debt. We are struggling to pay everything each month and was wondering about an IVA. Could you please tell us what an IVA is, will it affect our credit history, will it have any affect on our house and will if affect us from re-mortgaging when our fixed rate expires in march 2011?
IVA or individual voluntary arrangement is in basic terms an agreement set up on your behalf by an insolvency firm to enable you to pay off an affordable amount of your debts. The IVA runs for 5 years, and you pay a monthly sum to your insolvency practitioner, which is then distributed to your creditors. Things will be tight during your IVA but at the end, you will be debt free, and able to start livin again! Knowing that the phone calls and the red letters will stop makes the sacrifices all worthwhile, and it can actually be fun trying to live on a tight budget. We are soo glad that we entered our IVA, and can now look to the future without the sleepless nights. Have a look on the forums for IP's and take advice from more than 1. Hope this helps
Roadrunners
Hi there Niki87 and welcome to the forum as Roadrunners said it is a voluntary arrangement to pay your creditors the best dividend you can, you will need to choose an IP to work for you, choose wisely as 60 months the duration of most IVA's is a long time and you need to build a good relationship with your IP... have a look at www.iva.com for reviews and contact a few IP's to discuss your circumstances and get their free, impartial advice. You would need to mention your mortgage to your potential IP and they will advise accordingly, personally my fixed rate ends next year and that has been built in to my proposal to allow my IVA payments to decrease to allow for my mortgage increase. You may also have the 4th year equity clause which you need to discuss fully with a professional.
I hope you find the right solution for you but please remember to contact a few companies, the IP's who post on the forum do all come highly recommended but make an unbiased choice and I wish you well in your journey to debt freedom.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
The only things that I will add are that if you own your own home and have equity in the property you will be expected to remortgage and release that equity in the 4th year of your IVA. If you can't remortgage you will most likely have to pay an extra year.
The other thing is that we are seeing more and more 6 year IVAs as a modification from some creditors. Even 6 years is better than the stress of debts!
Have a look at www.iva.com, where you will find reviews of IPs and contact 2 or 3.
Everybody here has contributed some fantastic information.
An IVA can be a great way to deal with your debt to help you deal with the pressures you're currently experiencing. There are numerous specialists here able to help consider your personal circumstances and discuss how an IVA or other solution will affect you.
Speaking to 1, 2 or 3 (if you have the time) experts will give you a good understanding of solutions available and you should then choose who you feel most comfortable with to help you achieve your goals.
The earlier you can manage to deal with it, the better. Good luck!
Kind regards,
Angela Rosler
Insolvency Manager
Helping people with their debt problems for nearly 10 years.
Contact me directly for free, impartial, confidential help and guidance.
You will find the attached leaflet very handy as well - so try and have a read through it and then ask away your questions on the forum or directly to an insolvency practitioner.
