IVA FAQ

In our experience no one has lost their house when entering an IVA. Your recommended IVA provider will establish whether or not you have any equity in your home as a part of their initial assessment. If you do have equity, then you will be given an option to buy any future equity from your IVA provider.

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Yes is the answer. When you enter into an IVA – you will not be allowed any form of credit. After your IVA agreement is completed you will find it more difficult to get obtain credit three years after your IVA is completed, then your credit file will be clean, and it is then up to you to build up your credit rating.

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No is the answer. Your details will get published in the Edinburgh Gazette which is a publication that is not available in any newsagents or shops and is mainly used for creditors, transport and planning proposals, environment proposals and corporate notices.

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Yes they are Similar. an IVA is only for residents of and usually lasts for three years, IVA’s are for residents of England, Wales, and Northern Ireland, IVA’s last for typically five years and have similar workings to IVA's.

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Only a licensed Insolvency practitioner can set up and administer an IVA

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Some insolvency companies do not offer home visits, or will charge you for a survey, or even charge you setup fees! IVA can put you in contact with the best company suited to you !

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No. an IVA is a legal process which allows you to come to an agreement with your creditors to repay them less than you actually owe them.

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No. Since you will not be borrowing any money, there will be no need for a credit search.

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Yes. Entering into an IVA is not prohibited if you have Court action against you.

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Depending on the equity you have you may have to release equity in your home into the IVA usually as part of the final settlement. However, there are mechanisms that can be put in place to protect your home such as "buy-back" or extra contributions.

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No. It makes no difference whether you are a tenant or homeowner or if you are still living with your parents.

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an IVA is a private arrangement between you and your creditors

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No. an IVA can only cover your unsecured debts and arrears

No. an IVA does not cover student loans.

A secured debt is a debt secured against an asset that you own. Typical secured debts will be a mortgage, a secured loan, car HP, etc. An unsecured loan is any loan not secured on an asset, such as a bank overdraft, a personal loan, a credit card, store card, etc.

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No creditors do not have to accept an IVA but it will only fail if creditors representing over 33% of the total debt value object in writing within 5 weeks of receiving notice of the of the IVA.

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Yes, but only if more than 33% of the total debt is owed. Once the deed has become protected, all creditors are bound by law to accept the terms of the deed.

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You should expect that your credit rating will be affected by going into an IVA.

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Yes. Once the IVA has become protected, you are protected from all further recovery action by your unsecured creditors.

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This can vary, but it usually lasts for 3 years.

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If you are unable to maintain repayments because of changed circumstances, your trustee in the IVA can request a variation to reflect your new circumstances.

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If you fail to keep to the arrangement, your trustee in the IVA has the right to freeze your bank account and even to apply for you to be sequestrated.

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The trustee's fees are collected from the payments you make into the IVA and you will normally have no other fees to pay.

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It takes typically 5-6 weeks to set up an IVA.

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No, but any such interest and charges will be included in the IVA if it is approved and becomes protected.

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Yes, but you can apply to the courts for an Interim Order to stop any of your creditors taking further recovery action until the outcome of your creditors meeting is known.

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You will have to come to an informal arrangement with you creditors to repay your debts or consider sequestration.

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This means that no further action can be taken against you by your creditors for recovery of the money you owe them. Lenders have to accept the balance of your Trust Fund account as full and final settlement at the end of the three year period.

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You are entering into a contract to repay your debts, usually at a reduced rate. As such you agree to:
• Co-operate with the Trustee
• Pay the agreed monthly contribution
• Not take any further credit
• Advise the Trustee if you receive any unexpected windfalls in excess of £200.

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