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 look to complete a detailed telephone assessment of your personal financial circumstances – we call it a ‘Personal Consultation’
The Personal Finance Advisor will assess what solutions are available and suitable and together you will discuss your options and agree the best route to addressing your finances.
If an IVA appears to be the most suitable debt solution for your current circumstances then your Personal Finance Advisor would discuss how it would work for your circumstances and then send you a copy of all discussed for you to read, following the telephone call.
After reviewing paperwork and taking your time in making a decision, if you chose to use GW to explore the IVA further then you would need to return certain documents.
These can be collected from you via a courier – don’t worry – that’s at no cost to you!
Your Personal Finance Advisor would check your paperwork and make sure an IVA remains the better suited solution 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 Johnson Geddes for our IVA referrals. We would notify you of where we were transferring you to prior to 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.
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 £7000 total debt level 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.
Here’s how it worked:
60 months x £80 – £4,800 paid towards IVA and £2,200 written off.