An IVA, also known as an Individual Voluntary Arrangement, is a formal solution that can be right for a lot of people struggling to pay their contractual debt repayments. However like all debt solutions, an IVA will depend on your personal circumstances.
To qualify, you will need to have debts over £7,200, have more than 2 qualifying debts, and at least £100 left over each month after priority payments such as mortgage/rent and utilities are made.
Because DFH prides itself in providing consumers with a personalised view of all the debt relief options available, including a balanced understanding of the pros and cons of each option. If you are eligible and you feel an IVA is the right debt solution for you, we will work in conjunction with our preferred IP (Insolvency Practitioner) to create a formal agreement between you and your creditors.
As with all debt solutions, to enter into an IVA you will need to complete a full income and expenditure review. This will be done with a financial adviser to determine how much you can afford to pay back to your creditors each month. Your new affordable monthly payment will usually last for 5 years. After that time, any remaining unsecured debt is written off. In some extreme cases our preferred IVA partner has written off as much as 98% of unsecured debt, however the average debt write off is around 55%.
Please note 75% (by debt value) of voting creditors must be in favour of the proposal for the IVA to go ahead. However our advisers knowledge of the the IVA industry, would only recommend this route if they were more than 95% confident an IVA would be approved. The good thing to know is that there is no upfront costs to enter into an IVA , as all fees are included in the proposed new affordable monthly repayment, all of which will be outlined to you if an IVA is chosen. If in that small chance that your IVA is not approved by your creditors, there will be no cost to you for the advice given or the services of the IP.