January 2008

IVA Faq's

Who can enter into an IVA?

Typically, you should have debt of £12K+ and min 3 creditors. Most of the IVA providers also impose the minimum disposable income that the debtor should have to be able to enter IVA.

Will my credit rating be affected?

If you go ahead with IVA agreement, you will not be able to use your credit and store cards; only prepaid cards and bank accounts can be used. However, in some circumstances you may be allowed to remortgage your property.

Professional status will not be affected if you undertake IVA, however, it will appear in your credit records.

IVA has much less damage on your rating than if you go, for instance, for bankruptcy.

How long will my IVA last?

IVA lasts for a fixed period of time, typically 5 years.

What happens after the IVA ends?

You are free of debts and have a right to take out secured loans and other borrowings.

When should I apply for IVA?

It is better to apply for IVA before you consider bankruptcy, as IVA might be a much cheaper option for you. Your monthly payments depend on your disposal income, so you will never pay more than you can afford.

What if creditors don’t agree?

You need only 75% of the total value of creditors to enter IVA. This will be sorted by Company Insolvency Practioner.