IVA Advice and IVA Help

IVA Advice

An IVA is a legally binding agreement between you and all the people and organisations you owe money to (your creditors). You can try to arrange an IVA when there is no real prospect of paying off all your debts.

With the help of a licensed insolvency practitioner, you work out what you can realistically afford to pay back over a period of time - often 3-5 years. If three-quarters of your creditors agree, all your debts and the future interest on them will be frozen at the time that the IVA proposal is agreed. Your creditors will usually forego some of the debt you owe and at the end of the agreed period these debts are written off provided you have kept up with the negotiated monthly IVA payments. As long as you are confident you can maintain the regular monthly payment that is agreed an IVA could be the solution for you and you could be debt free in 5 years or less.

IVA Rejected but Arranged Structured Repayment Plan to get Finances on Track

IVAs are not suitable for everyone: from time to time IVA proposals get rejected. However, everyone at ClearDebt does their utmost to get people on the road to becoming debt free in the most suitable and stress-free way.

Ms H, a full time carer for her three children, accrued considerable debt during her marriage. When her marriage broke up she found she had to sort out all the debt that had built up during her marriage by herself, as the credit was in her name. Ms H is unemployed and her income comes from benefits.

ClearDebt found that owing to the severity of her children’s disabilities, Mrs H had a surplus amount each month from her benefits, although not sufficient to deal with her debts as they fall due, was enough for a sustainable IVA contribution. Normally we would not propose an IVA for a client whose sole income is benefits, however, the money she gets is guaranteed for the whole duration of the IVA and they are above what she requires to live. In addition, it we considered that Ms H was in this position because companies who had lent to her did so knowing she was completely dependant on state benefits.

Unsurprisingly (to us), Ms H’s IVA proposal was rejected because her income is solely derived from benefits. This left her up a creek without a paddle. ClearDebt, however, arranged a Structured Repayment Plan Structured Repayment Plan. This informal arrangement means Ms H is now paying one regular monthly amount that she can realistically afford and will help her resolve her debt problem. The sustainable plan we arranged achieves a 64p/£ distribution net of expenses: the creditors have agreed that the remaining debt will be written off after 5 years.

Ms H was determined to play fair by her creditors: we think they could have done more to play fair by her.

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IVA Advice - Northern Ireland

IVA Advice

ClearDebt insolvency practitioners currently only undertake cases for individuals who are residents of England or Wales. However, Northern Ireland residents can use the tools on our site and, if appropriate, we will refer them to an insolvency practitioner in Northern Ireland.

If you are a resident of Northern Ireland and are experiencing financial difficulties, take your first step towards a positive solution by clicking here to take the ClearDebt Analyser test today.

The test is free and there is no obligation to use the ClearDebt service further if you do not wish to.

In just two minutes the ClearDebt Analyser gives you a personalised report which advises you on the options that are available and which are suitable for you.

If the ClearDebt Analyser indicates that an individual voluntary arrangement (IVA) may be the best option for you to consider our ClearDebt advisors will be able to put you in contact with an insolvency practitioner in Northern Ireland who will be able to assist you further.

Debt Solution - IVA: IVA Advice

Please contact ClearDebt to discuss a debt solution and for IVA help and IVA advice.
Our bankruptcy advice and our IVA advice is free and we want to help you to avoid bankruptcy.

You can email us directly at:

info@cleardebt.co.uk and we will ensure that an advisor contacts you within one working day.

Alternatively you can call us free on: 08000 192 095

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IVA Advice – IVA Facts and advantages over bankruptcy

IVA Advice

If you are unable to pay all your bills, an IVA may offer you the opportunity to freeze interest payments, reduce debts and regain certainty in your financial life. For many, an IVA may be the best road back to a debt free future.

• You usually only have to pay back part of your debts. A ClearDebt IVA may be possible for people who owe as little as £10,000
  
• You make one fixed monthly payment or, in some cases, a lump sum
  
• Once your IVA has been agreed all your creditors are legally bound and cannot change their mind
  
• As long as you make your IVA monthly payments, all legal action by your creditors is stopped,
  
• You pay no more interest on your existing debts
  
• An IVA is not publicised in the local newspapers
  
• Professional status is not at risk (i.e. Accountants, IFAs, etc)
  
• Your property may be protected (although in some cases it may be a good idea to arrange for some or all of any cash locked up in your property to be included in the IVA)
  
• Your IVA proposal is dealt with by a licensed insolvency practitioner ensuring that the best and most realistic deal is put before your creditors.

Debt Solution - IVA: IVA Advice

Please contact ClearDebt to discuss a debt solution and for IVA help and IVA advice.
Our bankruptcy advice and our IVA advice is free and we want to help you to avoid bankruptcy.

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Just how long is an IVA?

Lot’s of people seem to think that an IVA is automatically five years long. Well, that is true of the vast majority – but an IVA can actually be of any duration and there seems to be a slow, but significant increase in arrangements that are both shorter and longer than the five-year norm.

Short IVAS

Short IVAs (mainly designed to last a year or less) are definitely on the up – and represent a possibility for the debtor who has been on the property ladder for some time but who is close to living beyond his/her means.

If you can re-mortgage your home to release equity amounting to around 75%, or more, of your unsecured debt – and you have very little money left over after monthly living expenses, you may be able to arrange an IVA whereby your remaining debt is forgiven as soon as you pay over the money you release from your home’s value. The IVA will end at the same time and you can start rebuilding your financial life.

One year IVAs are also possible where a relative, parent or third party is prepared to pay a substantial amount into the arrangement.

We should stress that, if you have a significant sum left at the end of each month, after legitimate living expense, you will probably be asked to contribute that too – usually over 5 years.

Long IVAS

IVAs that are longer than five years can still make sense: It is becoming more common to see six year IVAs, and even the occasional seven-year arrangement. These usually occur because creditors believe the debtor is not repaying enough over five years.

Longer IVAs occasionally occur because the five-year arrangement cannot meet the artificially high rates of return one or two creditors seem to want these days.

They also occur because high fees by some IVA providers also mean the creditors’ expectations can’t be met without extending the life of the arrangement.

Here at ClearDebt, we understand the first factor – but deplore the other two: Creditors should judge individual IVAs on whether the debtor is doing his/her best and whether he/she can realistically afford the payments: Low IVA fees (like ClearDebt’s) mean more debtors can be offered an IVA – IVA companies need to look closely at what they charge.

So, it’s still true that your IVA is most likely to last five years. But, it does not have to be that long, or that short: ClearDebt will advise you on the best way to become debt free – in as short a time as possible and is dependent on your financial circumstances.

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Creditors Guide

Statement of Insolvency Practice 9 (“SIP”) is one in a series issued to licensed insolvency practitioners with a view to maintaining standards by setting out required practice and harmonising practitioners' approach to particular aspects of insolvency.

The purpose of this SIP is to:

Ensure that members are familiar with the statutory provisions relating to office holders’ remuneration;

Set out required practice with regard to the observance of the statutory provisions;

Set out required practice with regard to the provision of information to those responsible for the approval of fees to enable them to exercise their rights under the insolvency legislation;

Set out required practice with regard to the disclosure and drawing of disbursements.

Accordingly one of the requirements of the SIP is to make available a number of Creditors’ Guides depending on the type of insolvency, below is a downloadable guide "Voluntary Arrangements - A Creditors’ Guide to Insolvency Practitioners’ Fees" in PDF format

Hard copies are available upon request please contact us to obtain a copy free of charge by post.

Download PDF

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IVA Advice – IVA Facts and disadvantages

IVA Advice

In some circumstances an IVA may not be your best bet – ClearDebt will always endeavour to be absolutely clear with you about the options you should choose to avoid bankruptcy:

• An IVA is probably not suitable if you cannot make regular monthly payments of £160 or more..
  
• Creditors representing at least 75% of the value of the total debt owed to those present at the meeting (or who sent proxy votes to the meeting's chair) must agree to the proposal.
  
• It is unlikely your creditors will agree to accept less than 25p for every pound you owe (But they will probably agree to see you repay this over three to five years)
  
• Your creditors are unlikely to agree to an arrangement that makes lower returns for them than would bankruptcy.
  
• If you stop your monthly payments for any reason bankruptcy proceedings may be taken against you.

Debt Solution - IVA: IVA Advice

Please contact ClearDebt to discuss a debt solution and for IVA help and IVA advice.
Our bankruptcy advice and our IVA advice is free and we want to help you to avoid bankruptcy.

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IVA Advice - Guide to arrange an IVA

IVA Advice

ClearDebt offer free IVA advice and help guide you through the various steps to arrange an IVA. Arranging a ClearDebt IVA can be summarised into 5 simple steps:

1) Take The 2 minute ClearDebt Analyser and receive a report on the solutions likely to be open to you.

2) Take The Detailed Financial Healthcheck

3) Receive your personalised ClearDebt report and recommendation

4) We check your Information and prepare your IVA proposal if that is the solution appropriate to you

5) We arrange to meet you and sign your IVA proposal and then arrange a meeting with your creditors to get it approved.

Once your IVA proposal is approved all your debt worries are over providing you stick to your agreed monthly payments.

In a very few cases we’ll tell you early on in the process that there may be an additional step after you sign the documentation where an application to court is made for an Interim Order. This will only be made if a creditor has started proceedings against you, such as the issuing of a bankruptcy petition. This will give us time to prepare your IVA proposal and stop action being taken by your creditors in the meantime. Click here for more information on interim orders.

Debt Solution - IVA: IVA Advice

Please contact ClearDebt to discuss a debt solution and for IVA help and IVA advice.
Our bankruptcy advice and our IVA advice is free and we want to help you to avoid bankruptcy.

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IVA Advice – Being eligible for an IVA?

IVA Advice

ClearDebt IVA are generally available to people with any level of debt , unlike the £15,000 minimum set by some of our competitors. Our fees ( which are paid by your creditors) are much lower than our competitors allowing more of your money to go to your creditors. This allows them to accept proposals from people with lower levels of debt and makes your proposals more likely to be approved. However, there are a number of criteria you must meet if you are to propose an Individual Voluntary Arrangement (IVA):

1. You must be technically insolvent. This means that you cannot pay all of your debts as they currently fall due.

2. If you wish to propose an IVA with an interim order (see glossary) you must not have proposed one within the past 12 months.

3. You must have someone willing to act as your nominee. This person must be a licensed insolvency practitioner who is regulated by one of the recognised Professional Regulatory Bodies. ClearDebt Limited is a firm with licensed insolvency practitioners and we will deal with every aspect of your case from start to finish. We do not just collect your information and then refer it, for a fee, to a panel of insolvency practitioners which is what many other providers actually offer.

ClearDebt believes that as long as your IVA proposal has a realistic chance of success and you meet the criteria set out above, an IVA may be considered.

What is most important when considering whether to propose an IVA or not is whether the proposal is fair to both your creditors and to you. In our experience this means that you must be able to make a minimum monthly contribution of £160 over a maximum five-year period.

In many, but not all, cases you will owe more than £10,000. Taking the two-minute ClearDebt Analyser test now will give you a personalised initial assessment of whether a ClearDebt IVA could be right for you, taking into account all the information that contributes towards making a successful IVA proposal.

Debt Solution - IVA: IVA Advice

Please contact ClearDebt to discuss a debt solution and for IVA help and IVA advice.
Our bankruptcy advice and our IVA advice is free and we want to help you to avoid bankruptcy.

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IVA Advice - What is the Cost of an IVA?

IVA Advice

You do not pay anything other than your agreed, fixed monthly contribution. An IVA can only be prepared for you by a qualified licensed insolvency practitioner, so there are inevitable professional fees . However, all fees are paid for from the contributions you make and which are agreed by your creditors.

We believe that the cost of an IVA with ClearDebt is far lower than that offered by any other IVA provider. We keep costs low by collecting much of the required information over the internet from you and by using tailor-made automated procedures and specialist administrators to push our cases through.

By keeping our fees lower than our competitors more of your contributions will go to your creditors which means they are more likely to accept your IVA proposal than might otherwise be the case.

ClearDebt Limited only deal with IVAs. This means all our structures are streamlined to eliminate unnecessary cost and wasted time.

In addition, ClearDebt relies mainly on the internet to advertise our services and we do not spend large, wasteful amounts on glossy advertising – we believe the quality of our service will speak for itself.

ClearDebt earns IVA fees, like other IVA companies, in two ways:

1) The ClearDebt Nominee’s fee (the fee for putting together the proposal and presenting it to your creditors) for a simple IVA varies from £650 to £2,500 depending on the amount of your debt and number of your creditors. A simple IVA is generally where you are an employed person with, bank loans, store, and credit card debts. If you are a sole trader, partner in a business or have complicated affairs our fees may occasionally be higher – but we will explain the reasons if they are higher than our standard.

2) The Supervisor's fee: ClearDebt charges up to a maximum of 15% of all contributions you make over the period of the IVA, taken monthly, in fulfilment of the supervisory role.
Remember – these fees are included in the agreed amount that you pay each month. There are no additional or hidden fees.

Remember – these fees are included in the agreed amount that you pay each month. There are no additional or hidden fees.

Debt Solution - IVA: IVA Advice

Please contact ClearDebt to discuss a debt solution and for IVA help and IVA advice.
Our bankruptcy advice and our IVA advice is free and we want to help you to avoid bankruptcy.

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Links to related ClearDebt articles:

Individual Voluntary Arrangement (IVA)
Debt forgiven with an IVA
ClearDebt debt survey gives regional, gender and age context for upcoming Government insolvency statistics
Young women IVA seekers have greater debts
People with debt problems are more prepared to cut their children’s activities than to give up smoking
ClearDebt welcomes insolvency watchdog’s proposals on IVAs
CLEARDEBT SURVEY SHEDS LIGHT ON DTI INSOLVENCY FIGURES
IVA alternative to bankruptcy misconception
ClearDebt comments on Latest IVA Figures
ClearDebt clarifies IVA process
IVA Rejected but Arranged Structured Repayment Plan to get Finances on Track
Debts cut by 61% - saving £600 a month with an IVA
IVA is not always the right choice
Clear debt with an IVA - and starting life again
Your money or your job
IVA slashed monthly payments to £300 - from more than £2,000
Divorce/separation can change your financial life
IVA after wage drop and debts spiralling.
IVA Advice - Guide to arrange an IVA
IVA Advice - Northern Ireland
IVA Advice - What is the Cost of an IVA?
IVA Advice – Being eligible for an IVA?
IVA Advice – IVA Facts and advantages over bankruptcy
IVA Advice – IVA Facts and disadvantages
IVA Help
IVA Help - How long could it take?
IVA Help - Insolvency Practitioner
IVA Help - Secured loan or mortgage?
IVA Help - What will happen to my assets in an IVA?
IVA Help - What will happen to my home in an IVA?
IVA Help - What information do I need to arrange an IVA?

Downloadable debt help guidesCredit Card Debt HelpDebt Solution - IVA AdviceDebt help linksCitizens Advice - Debt AdviceDebt Advice - CCJs and BailiffsPersonal insolvency in ScotlandDebt ManagementDebt ConsolidationIVA HelpIVA AdviceBankruptcy Advice

Linked section: IVA Help

• ClearDebt is the only IVA company to offer full online IVA applications
• Five simple sections to complete a full IVA application
• No time consuming filling debt forms by hand
• Login when it suits you and complete at your own pace
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• You stay in control

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