What Is An IVA (Individual Voluntary Arrangement) - Free Debt Calculator Hamilton Price

What is an IVA?

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What is an IVA (Individual Voluntary Arrangement)?

An IVA or Individual Voluntary Arrangement is a formal agreement made between the person in debt and their creditors. The agreement allows the person in debt to make regular monthly payments towards clearing their debt over a fixed amount of time. All further interest and charges on the outstanding debt are stopped. At the end of the arrangement, any unpaid debt is written off.

You are guaranteed to become debt free

Hamilton Price charge no upfront fees

One affordable monthly payment

Both tenants and homeowners can apply

All interest frozen and all charges stopped

Upon the successful completion of the IVA, they will be considered debt free even though they may not have actually paid off all of their debts in fullAny outstanding balances are written off (known as a “composition of debts” and then you are free to make a fresh financial start.

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Is an IVA right for me?

If you’re not sure whether an IVA is the right thing for you ask yourself the following questions…

Are you struggling to repay your debts?

Do you feel stressed by lenders contacting you about payments?

Are you worried about debts affecting your personal life?

Do you feel that your financial situation is out of control?

If you answered yes to any of the questions above, then an IVA may be the best solution for you.

Benefits of an IVA with Hamilton Price

 Telephone calls and payment demands stopped

Once the IVA is agreed, your creditors will not be allowed to contact you as long as your payments are maintained.

 Interest and late payment charges frozen

After the agreement has been put in place, your creditors cannot add further charges or interest to any of your accounts covered by the agreement.

 Can I afford an IVA?

The amount you repay depends on personal circumstances and the monthly payments you can afford.

 Single monthly payment

At the beginning of the arrangement, you agree with your creditors what you can afford to pay each month. In some cases, you can pay a one-off lump sum.

 Protection from court action

Once an IVA is in place, your creditors are not allowed to take further legal action against you as long as you stick to the terms of the arrangement.

 Confidential

If you undertake an IVA, it is a confidential matter between yourself and your creditors. There will be no publicity in the local papers. However, your name can be searched in the insolvency register which is available to the public here: Independent Insolvency Register.

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View our frequently asked questions

What is an IVA?

IVA stands for Individual voluntary arrangement. An IVA is a legal Voluntary agreement that you can make with your creditors to pay back debts which you are struggling with. It stops your creditors taking further action against you to recover your debts. You make payments towards your debts over a set period of time, an IVA will usually last five years, after which your debts are written off.

Whilst there are no legal maximum or minimum amounts you must owe to get an IVA, usually you must have debt of at least £4,200 to get your creditors to agree to the IVA. You can owe this amount across more than one debt, with more than one creditor.

In addition to setting up the IVA, Hamilton price will negotiate with your creditors throughout the IVA, meaning that you will no longer have to deal with demands for money or threats from your creditors.

IVA certificate, when do I receive this?

When the IVA has been completed you will be issued with a certificate of completion, it will also be sent to your creditors so they know that the IVA has been completed and the debt to them has been satisfied.

Your Insolvency Practitioner will inform the Department of Trade and Industry and the Court Service that your IVA has been completed. Your credit report will show that you have completed your IVA successfully.

You will receive a statement showing all the transactions that have been made, your payments into the IVA and the dividends paid to your creditors.

How much does an IVA cost?

An IVA is not free. Legally you cannot set up your own IVA, An insolvency practitioner will be required to set up your IVA.

There are no upfront charges or fees involved setting up an IVA with Hamilton price. Any fees involved with your IVA are recuperated from your creditors by the insolvency practitioner over the term of the IVA.

IVA process, how do I get an IVA?

The first step is to seek an organization like Hamilton Price who will not charge you any fees for their service.

Once Hamilton Price have spoken to you, on the initial call we will assess your situation and establish whether an IVA is right for you, we will complete an income and expenditure (budget) which allows us to ascertain your affordability.

Without ascertaining your circumstances and affordability we cannot give you the appropriate advice.

Once we have confirmed an IVA is right for you we will need to see proof of income (like pay slips, recent bank statements, or benefits letters), information about your savings and assets (including how much they’re worth and bank statements for any savings), a list of all your debts and who they’re owed to, and any paperwork to do with your mortgage or rent agreement.

We will then work out a realistic repayment plan based on the budget you have shown us. The payments will be fixed at as much as you can afford each month, based on your budget.

Once a payment plan has been agreed, your insolvency practitioner will write a formal proposal of your IVA to your creditors. This will include a full report into your financial circumstances, details of the repayment plan, and reasons why your creditors will get more from the proposed IVA than if they made you bankrupt.

Your insolvency practitioner will then call a creditors meeting, during which your creditors will either accept or reject your proposed IVA. You do not need to attend any meeting, we will deal with the meeting on your behalf.

Creditors can suggest changes to the IVA, but the changes won’t go ahead without your consent. An IVA must be accepted by creditors who represent 75% of what you owe in order to be accepted. Once the IVA has been accepted, it is legally binding on all the creditors you have included in it, whether or not they voted for or against it.

The IVA becomes active straight away and you must begin your monthly payments to your insolvency practitioner. Your insolvency practitioner will supervise your IVA and make sure that the right creditors get the right payments.

If your financial situation changes at all, you must tell your insolvency practitioner, who may be able to change the terms of your IVA to suit your new situation. In the terms and conditions of your IVA there is a stipulation allowing you six months or more grace in the event of your financial situation changing (losing your job).

Your insolvency practitioner will also review your financial circumstances once a year: you will need to show them similar paperwork as during the IVA application process. This is to make sure that your monthly payments are neither too high nor too low.

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