An Individual Voluntary Arrangement (IVA) is an agreement between you and your creditors where you repay affordable monthly payments towards your debt over a typical term of five years, with the remainder discharged (written off) at the end of the agreed term. An IVA is supervised by licenced Insolvency Practitioner (IP) and is a legally binding contract between you and your creditors. The IVA is an alternative to bankruptcy, preferable in circumstances where you can make payment towards your debt, just at reduced levels. An IVA is only available for UK residents in England, Wales and Northern Ireland.
A friendly and non-judgemental Personal Finance Advisor will complete a detailed telephone assessment of your personal circumstances – we call it a ‘Personal Consultation’. The assessment will look at areas such as your personal and financial situation, such as debts, the value of those debts, what creditors you owe money to, and conduct an income and expenditure review to determine what you can likely afford to pay towards your debts.
Your Personal Finance Advisor will assess what solutions are available and suitable for you. We will then discuss those options, recommend a solution and agree on the best route to address your debts. Depending on your circumstances, our advice will also be documented and provided to you before you make a decision to proceed with the IVA.
We will then request various documents from you such as identification, creditor and debt documentation and bank statements. These can be collected in different ways, including collection by courier at no cost to you.
Your Personal Finance Advisor would check your paperwork and make sure an IVA remains appropriate for you before transferring your documentation to the Insolvency Practice for the Insolvency Practitioner to begin work on your behalf. GW uses both Hanover Insolvency Practice and The IVA Advisor for our IVA referrals. We would notify you of where we were transferring you to before any referral.
If at any stage before approval, it becomes apparent that the IVA is not the best advice, you will be notified and will come back through to your Personal Finance Advisor at GW where alternative solutions will be explored and discussed.
If your IVA proposal is successful then you will be looked after by the Insolvency Practitioner and their team for the duration of your IVA.
Where an IVA is available, another debt solution may also be available and suitable for you.
To give you an idea of how an IVA might work for you, the fees and timescales, see our below example. We would be happy to provide you with something more specific and tailored to your personal circumstances. Just complete our online enquiry form and we will call you back or call on either 08081 292 010 or 0161 476 9500.
Mr D was a Homeowner and had recently separated from his wife. Following the separation, he could no longer afford the repayments to his unsecured creditors.
He had a total debt level of £7,000 and could only afford a monthly repayment of £80.00. The IVA was approved for £80.00 per month for a period of 60 months.
60 months x £80 – £4,800 paid towards IVA and £2,200 written off. All IVAs fees are factored into the monthly payment