An IVA is a debt solution that allows you to be debt free in either five or six years, after which time up to 80% of your debt can be written off. It allows you to repay your debts over a period of time, after which any remaining amounts owed will be written off.
The IVA process begins with the creation of a Proposal. This is managed by a Licensed Insolvency Practitioner, who will act as what is known as the ‘Nominee’. You’ll need the following details:
• Name and contact for all of those you owe money to
• A breakdown of your monthly income and expenditure
• Information about your home – such as its value and any remaining lending on it
• A breakdown of your assets that have sizeable value
IVAs are government approved and managed through a provider, who’ll help you with your application.
What assets are included in an IVA?
All assets that could be sold or that would normally be included within a bankruptcy will likely be included in the IVA (e.g. property, savings, valuable jewellery etc.).
IVAs are only suitable for non-priority debts such as:
- Personal loans
- Bank or building society loans
- Money borrowed from friends or family
- Credit card, store card debts or payday loans
- Catalogue, home credit or in-store credit debts
Can I decide to terminate my IVA after it’s been set up?
Yes, but your will have to find a solution to your debts, and you could be forced into bankruptcy by one of your creditors. It’s worth noting that you needn’t terminate your IVA if you’re simply struggling to pay. Speak with your Insolvency Practitioner in the first instance, they’re there to help you.
Click IVA Debt Solution to know more.