Is an IVA the right solution for me?
To enter an IVA you should have at least £15,000 of unsecured debts owed to 3 or more creditors. A mortgage, second charge loan or car hire purchase agreement are secured debts and you can not use an IVA to pay off these as these types of debts can be recovered by the lender taking repossession of them.
What percentage of my debts am I likely to get written off?
Whilst you may read headlines of 75% this is becoming more unusual. More typically lenders are only likely to accept deals which give you a discount of 55-65%
Can you set up an IVA with a single payment rather than monthly repayments? Yesor even a mixture of the two.
Will I lose the equity in my home?
Most likely, Yes - You are likely to be required to release any the equity in your home to help clear the debt but quite often this is only asked for in the later stages of your Individual Voluntary Arrangement.
What if I have County Court Judgments CCJs against me?
Not a problem. The amounts required to be repaid under a County Court Judgment can be incorporated in the IVA and it will stop any further action being taken.
Do creditors have to accept an IVA?
No The draft proposal will be put to your creditors at a specially convened meeting organised by the Insolvency Practitioner appointed to act on your behalf. Only if 75% (by value) of all creditors agree is it accepted. As it is based on value of debt owed, even if one creditor who is owed more than 30% of the debt refuses to accept the proposal it will fail. A new proposal can be made after a year? Alternatively you could consider Debt management or if necessary you may have to file for Bankruptcy.
