Issues Regarding IVA 2016

Issues Regarding IVA:

An IVA is right for you or not?

An agreement of formal bent which allows you to repay the debts of yours in the amount that is affordable for you is referred to as IVA (Individual Voluntary Arrangements).

IVA can have a lump sum payment deal or a payment plan spread over 5 to 6 years. The debtor pays to IP each month, and the IP then pays that to the creditor in a managed way. Creditors deal with the IP instead of the debtor and the debt amount remains fixed. Outstanding debt is cancelled after the final amount paid. IVA is for the UK while Protected Trust Deed is for Scotland.


For almost five to six years, you can make monthly payments that are affordable for you.

If a lump-sum is affordable for you, then you can even offer it as a full and the final payment, and even you can pay it by following the monthly method of payment.

Each time you are done with paying, a written record of remaining debt will be made.

The creditors’ of your, don’t have any right to pursue you for the debt.

Being a homeowner, you can easily take your home by providing the loans and all the mortgage payment to make your home secure.


You will try for remortgaging your home if you find equity in it.

In case, you failed to re-mortgage, then you need to make an extra payment (maximum 12), or an equity some may be offered by the third party.

Be aware of the fact that it may charge an extra interest while remortgaging.

It may affect negatively in the rating of your credit

The IVA of yours will be captured in a register which is for the public.

Some other issues while having an IVA:

Following are some important things one should consider before going for IVA:

Interest can be backdated by the creditors and they can also request the IP for debtor’s bankruptcy in case IVA fails.

Your (the debtor’s) expenditure will be limited and kept in check during the IVA period.

If your financial conditions improve or worsen during the period, you can file a review case so that the T&C can be reconsidered. If your income has improved, you may have to pay a larger amount from now on. Reviews are available annually.

The debts which are a part of an arrangement are discharged after the end of that agreement.

Those debts that are not enclosed will still need to pay, such as, the amount that is under the authority of family court, any type of fines regarding court, debts that may arise from a fraud, the incurred debts after IVA, or loans of student.

There will be no charges for any piece of advice or support that is provided to you before you actually get the setup of your IVA. But the fees will be charged during running the IVA of yours. The fees are off the standard of the industry and this fees is arranged by the creditors of yours. The approval to the fees, before the IVA of your got approved, is mandatory. There isn’t any need to pay any kind of additional charges, as these fees will be deducted from the monthly payment of yours.

If an IVA is recommended to you and you are living in Northern Island doing a self-employment than you may refer to an Insolvency practitioner to whom your IVA will be administered.