IVA FAQ’s

Who can qualify for an IVA?
How long does it take to set up?
How long is an IVA?
What are my repayments likely to be?
Will I have to sell my house?
Do I have to pay for the Trust Deed?
Can I have an IVA if I’m self-employed?
Can an IVA affect my credit rating?
What happens after I complete my IVA?
How do I apply for an IVA?

Who can qualify for an IVA?
You need to be a resident in England or Wales for at least six months before you can apply for an IVA.

For free advice Fill-out the IVA Calculator form

How long does it take to set up?
An IVA can take anywhere between 4-8 weeks to set up depending on how complex your financial arrangements are. Once the IVA proposal is passed to creditors, it can take another 2 weeks to finalise. In the meantime, you Insolvency Practitioner will apply to the county court for an Interim Order to stop your creditors taking any action until this process is complete.

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How long is an IVA?
IVAs last 60 months (5 years), after which any remaining debt is written off and you will be considered debt-free.

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What are my repayments likely to be?
Everyone’s repayments are different and will depend on your income and level of household expenses. Your IP will ask you to do a budget, which will give them an idea of what you can afford to pay your creditors. Ideally, it should be at least £175 a month otherwise your creditors may consider the amount too low and reject your IVA proposal.

For free advice Fill-out the IVA Calculator form

Will I have to sell my house?
No, there are now laws in place to prevent you from being forced to sell your home. However, if you have a certain amount of equity in your house, your IVA may ask you to release some of it at the end of your IVA.

For free advice Fill-out the IVA Calculator form

Do I have to pay for the Trust Deed?
All of the costs associated with setting up and administering the IVA by your IP come out of your monthly payment, so essentially it is your creditors who incur the costs rather than you.

For free advice Fill-out the IVA Calculator form

Can I have an IVA if I’m self-employed?
You can still have an IVA even if you are self-employed. As long as you can prove your income, usually six months trading accounts from your business, you will be considered for an IVA.

For free advice Fill-out the IVA Calculator form

Can an IVA affect my credit rating?
Yes it‘s unavoidable, although by the time you take out your IVA you may have already have missed some debt repayments and have poor credit. Your credit rating will continue be affected until your IVA is complete. Also, under the terms of your agreement you will not be able to apply for any credit during your IVA. However, once your IVA is complete, you can start to rebuild your credit rating and use credit again.

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What happens after I complete my IVA?
Once completed, your IP will send you a certificate to show that all of your debts have been discharged and your have made all the payments required of you. You will then be legally debt-free. The completion of your IVA will also show on your credit file.

For free advice Fill-out the IVA Calculator form

How do I apply for an IVA?
Phone one of our IVA advisers now or try our IVA calculator, which will tell you straight away if you are suitable for an IVA and recommend who can help you set one up. Any company we recommend is licensed and registered with the Office of Fair Trading.

For free advice Fill-out the IVA Calculator form