Things you should know and do before you start an IVA
Understanding the IVA procedure...
We receive a lot of calls and emails from the public asking us about; "Things you should know and do before you start an IVA ".
Money Advice Direct receives 1000’s of calls from people who were told that an IVA was the best advice for their particular situation and encouraged into doing an IVA. They were often not made fully aware of the IVA implications. Money Advice Direct blame this problem on the growth of the many debt management companies giving poor advice to desperate and vulnerable people.
Money Advice Direct have therefore put together a guide outlining the things you should do before you start an IVA.
Things you should know about the IVA procedure
- Please note that an IVA will appear on credit files for six years.
- After an IVA is completed people may struggle to get credit in the future as if they had opted for bankruptcy.
- You will have to tightly managing your budget for 60 months.
- If you are a home owner you may need to remortgage or sell your property to
- Many debt advice firms make false about IVA's appearing on credit files for six years. This can ruin any possibility of getting credit in the future.
- An IVA may not actually write off as much debt as originally thought. Some callers have complained that after a five year the final reports from the IP have shown that debts have virtually been paid in full.
- Some IVAs have to be secured by a charge over the debtor's interest in the matrimonial home. This can make an IVA seem more like a secured loan with your home being at risk.
- Read up on the full implications and disadvantages of an IVA.
Things you should do before you start an IVA
- Open up a new bank account with a brand new bank or building society you have never used before. This new banking arrangement will give you a fresh start.
- Research the IVA and the other debt advice options thoroughly so you know what you’re getting into.
- Whether an IVA is a suitable option for you will depend on the severity of your debts and your realistic capacity to pay. Because of the long term repercussions associated with debt problems you should thoroughly research your options before taking action. It is important to be aware that some loan varieties such as student loans will not be cleared by bankruptcy.
- Read up about the alternatives to an IVA, such as debt management, bankruptcy or debt consolidation loan.
- Prepare a budget and read up on the allowable expenses that are possible in an IVA.
- List all the debts you owe. If you forget some debts it can cause a problem after your IVA is set up.
If you wish to discuss the Individual the things you should do before you start an IVA and understand how an IVA can help you please complete the following form or telephone freephone 0800 074 6918.
IVA Guide
- What does it mean if my IVA is not approved?
- What are my options if my IVA is not approved?
- My IVA has been approved, what do I do next?
- My IVA has been approved subject to modification – what does this mean?
- How do I make my IVA contributions?
- My IVA proposal included the provision that I had to sell/realise other assets – what do I need to do?
- I am receiving letters and emails from companies offering me a better solution than an IVA - what are these solutions?
- What do I do if my monthly IVA contribution will be late?
- How do I deal with my creditors once I’m in an IVA?
- How do I deal with additional creditors now that the IVA has been approved?
- What happens if I miss an IVA payment?
- The bank has not transferred my IVA payment - what do I do?
- What happens if I do not inform my IVA supervisor that I can’t make the contribution?
- I'm struggling to make the monthly IVA payment what should I do?
- I've received a 'Notice of Breach' from my IVA supervisor - what does this mean?
- What happens if I’ve missed IVA payments or received a notice of breach and there is no solution?
- Is it possible to finish or settle my IVA early?
- How do I settle my IVA early?
- What is the process involved when offering an early IVA settlement?
- Why would I vary the terms of my IVA?
- What does the IVA variation process involve?
- What happens when the IVA variation process has been approved by creditors?
- What happens when the IVA variation process has been rejected by creditors?
- How does an IVA end?
- Will I receive any correspondence when my IVA has completed?
- If one of my debts has been excluded from the IVA, am I liable to pay the debt after the IVA has completed?
- When does a creditor debt claim have to be received by when completing an IVA?
- What happens if any additional debt claims is received during the IVA closure process?
- How do my creditors get their money in an IVA and what are the IVA dividends?
- Does the money in my IVA account earn interest and if so where does that interest go to?
- Do I get a report or certificate stating the IVA has been completed?
- How does an IVA fail?
- What is the effect of IVA failure or an IVA failing?
- What happens after an IVA fails?
- What are the costs of an IVA?
- Who pays for my IVA?
- What is the IVA process?
- Who takes care of my creditors?
- Will an IVA make me debt free?
- How an IVA benefits my creditors
- Lifestyle changes during an IVA
- Advice on living with an IVA
- Will creditors contact me?
- Will I my IVA fail?
- Completing an IVA
- Getting credit after an IVA
- Can an IVA make me debt free?
- How to boost my credit rating after an IVA?
- IVA vs debt management
- IVA vs bankruptcy
- IVA vs debt consolidation
- IVA vs administration orders
- IVA pros and cons
- IVA definition
- What is an IVA?
- Why choose an IVA?
- Who is suitable for an IVA?
- IVA benefits
- IVA stages
- False IVA adverts
- IVA compared to Bankruptcy
- IVA compared to debt management
- IVA compared to debt consolidation
- IVA compared to administration orders
- How the IVA got so popular and famous
- Things you should know and do before you start an IVA
- Will an IVA make creditor phone calls stop?
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]