Frequently Asked Questions
Please see below Frequently Asked Questions people commonly ask us when enquiring about an Individual Voluntary Arrangement (IVA)
No! An Individual Voluntary Arrangement (IVA) has far less restrictions than bankruptcy and mainly will not lose all access to credit or assets.
Yes! With an Individual Voluntary Arrangement (IVA) you can continue to pay your hire purchase or car lease which will allow you to keep your vehicle so you can still get from A to B.
No! An Individual Voluntary Arrangement (IVA) would only be accepted if you had more debt than equity so as long as you stick to the IVA agreement and keep in touch with your Trustee then your home will not be at risk.
No! With an Individual Voluntary Arrangement (IVA) you provide your information about your situation and your supporting documents and the rest is done for you.
You must owe at least £7,000 of unsecured debt to qualify for an Individual Voluntary Arrangement (IVA).
Yes! With an Individual Voluntary Arrangement (IVA) you can enter the plan with another adult in the same household and you must both have at least £7,000 of unsecured debt when added together.
Yes! You can keep your mobile phone contract with an Individual Voluntary Arrangement (IVA).
With an Individual Voluntary Arrangement (IVA) you can include and consolidate all debts that are unsecured, there are some exclusions like SAAS student loans and criminal fines but most debts that are not tied to an asset can be included.
No! The only people the insolvency practice will inform of your Individual Voluntary Arrangement (IVA) is your creditors, the only time when a partner would know if you have joint debts as it will take your name off the debt.
Yes if you have an overdraft or debt with that bank as they are allowed to close your account when your Individual Voluntary Arrangement (IVA) becomes approved. It is pretty easy these days to change bank with all the new providers and online availability.
If you include energy debts into your IVA such as gas and or electricity debts your account will go back to zero and you will only pay for your future energy use going forward, your provider may ask to install a top up meter in the future.
Yes! During your Individual Voluntary Arrangement (IVA) the rules are you can apply for up to £500 credit and once you receive your discharge letter normally after four years you can start to build up your credit from there.
An IVA can be a useful solution if you have rent arrears from a previous property or if your current property you rent from your local housing association or council. The IVA will bring your rent account back to zero so you only need to pay your future rent, you can avoid eviction and keep the roof over your head and don’t have to worry about catching up with your arrears.
Six years, anything that appears will last on your credit file for up to six years.
Yes! An Individual Voluntary Arrangement (IVA) will stop any legal action such as Bailiffs, please note this will only apply when your case becomes approved, normally five weeks after you sign your IVA proposal.
Yes! Under public notices on your credit file will show the Individual Voluntary Arrangement (IVA) listed. Obviously if you already have defaults for non payment on there it might not actually make your score any worse but will likely not make it easier for you to get credit until after five years when your IVA is finished an even better in six years when the IVA and your debts are gone completely off your credit file..
With an Individual Voluntary Arrangement (IVA) you can include HMRC and DWP debts even if you still get benefits and your benefit deductions can be removed also.
Yes! With an Individual Voluntary Arrangement (IVA) you can include council tax arrears and your council tax account will go back to zero.
When your IVA is proposed that will include and income and expenditure which will have a disposable income left over for the creditors and that is the amount you repay, if you notify your Trustee you have excess funds such as inheritance during the plan then they could demand extra to be paid into the solution as they must be independent between you are creditors and they must try to get the debts and fees paid in full where possible
We have all seen the adverts where you can write off 70 – 95% of your debts with an IVA. The reality is you will write off more the more debt you have and will also likely write off more the less you have at the end of the month to repay also. To get an idea of how much you could write off and what minimum repayments are click here
Your income is calculated and then your expenses are taken off and what is left is what you pay normally for five years, so you want to get all the expenses you can in right? You can include all major outgoings, rent/mortgage/secured loans, council tax, energy payments, insurances, car payments, mobile phone costs, travel/car costs, food/housekeeping/clothing, TV/Broadband, grooming costs, hobbies, entertainment and much more. Don’t worry all this will be covered along the way.
No! We do all the hardwork for you, you apply, you complete the quick online application you provide the easy to get supporting documents and we do the rest!
Yes! We have never had a case where we have not been able to but you must act quick and get your case officer what they need fast to make sure we get the paperwork to the right people in time.
Don't see the question you want answered?
Don’t worry our friendly non-judgemental team are on hand and ready to answer any questions you have just hit the button below, enter your debt level then your details for the team to get in touch.
ivahelper.co.uk is a trading names of YEG Insolvency Limited.
A formal debt solution may not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
Free and impartial help with money – MoneyHelper
The registered office is 89 West Regent Street, Glasgow, G2 2BA. Registered in Scotland company no: SC393839. Registered with the ICO under the Data Protection Number ZA309473
Donna Forey is Licensed to Act as an Insolvency Practitioner in the United Kingdom by the Institute of Chartered Accountants of Scotland.
*Debt examples are subject to creditor acceptance, payments are subject to individual circumstances, and credit may be affected. Fees may apply.