IVA FAQ
Who can be helped?
Because of the costs of setting up an IVA, it is usually only practical to obtain one if your debts exceed £10,000 or so. Contact us for details of the options available to you
Will I lose my house?
Will I lose my house? No. But should you have equity in your house, you may be asked to re-mortgage to release equity into the IVA or the IVA may be extended. Also any savings or other assets will be taken into account when making an offer to creditors.
Can I stay in business?
Yes, you can in most circumstances. Unlike being declared bankrupt, there is less restriction on your business activities. However, an IVA may impact on any employment, including company directors
How long does an IVA last?
They normally last five years. However in some circumstances they can be extended
Which creditors will be included in an IVA?
Creditors you can include are: Banks, Finance Companies, Credit, store and charge card companies, Customs and Excise (VAT), Inland Revenue and even loans from friends and family. You can't include your mortgage, hire purchase, fines, debts incurred through fraud, maintenance/child support arrears or rental property.
Can I enter into an IVA if I have already received a Statutory Demand?
Yes, but an application to Set Aside a Statutory Demand will need to be presented to the court within a certain timescale.
Can I obtain an IVA if a Bankruptcy Order has been made against me?
Yes, but an Order of Annulment form will need to be presented to the court in time to halt bankruptcy proceedings.
What happens if I don't keep up the payments on my IVA?
The supervisor of the IVA would write to your creditors and make them aware of this, and if the payments were being missed due to a change in your circumstances then the supervisor would look to negotiate new terms with your creditors to help accommodate for these changes.
How will an IVA affect my credit rating?
Your ability to obtain credit will be affected for 6 years.
What happens once I finish paying my IVA?
At the end of the process the Insolvency Practitioner will issue you with a 'Statement of Completion', typically within 3 months of the final payment. The Insolvency Practitioner will also send a copy of this to the Insolvency Service so that they can amend their records. So there is no need for you to attend court or even visit the Insolvency Practitioner?s offices.
However, the onus is on you to send a copy of the Statement of Completion to all the credit reference agencies which are in operation at the time of their completion.