IVA - Individual Voluntary Arrangement - IVA Debt | Pros & Cons - UK

IVA – Individual Voluntary Arrangement

Information about the most popular of debt solutions


What is an IVA?

An Individual Voluntary Arrangement is a formal agreement with your creditors. You pay back what you can realistically afford over a period of time (usually five years).

If you stick to the terms and make the agreed regular payments, once your IVA has completed any outstanding debts will be written-off and you will be debt free.

It is an alternative insolvency solution to Bankruptcy and a Debt Relief Order (DRO).

IVA Pros & Cons

Advantages

  • Write-off up to 75% of unsecured debt
  • Interest and charges will be frozen
  • No more creditor letters or calls chasing the debt
  • Bailiff and enforcement action can be stopped
  • Pay back what you can realistically afford
  • No upfront fees charged (Nominee’s and Supervisor’s fees are paid from your agreed monthly payment)

Disadvantages

  • Your proposal has to be accepted by your creditors
  • You may have to release assets of a certain value to the benefit of your creditors
  • All IVAs are recorded on a public register
  • If you are a homeowner you may be expected to release equity when entering into an IVA for the benefit of your creditors
  • Your credit rating is affected throughout your IVA and usually for an additional year after completion

IVA CALCULATOR

Example debts before an IVA

Credit Cards£5,000
Payday Loans£1,500
Council Tax£3,000
Utility Arrears£2,000
Bank Loans£4,000
Overdraft£1,000
Debt Collector£2,450
Total£18,950

The IVA example is for illustration purposes only. Monthly payments are based on individual circumstances.

Before:

monthly payments

£632

Debt written-off

0%

Total debt repayable

£18,950

After IVA approved

monthly payments

£79

Debt written-off

75%

Total debt repayable

£4,738

IVA ADVICE & HELP

Initial Consultation

Initial Consultation

When you contact us we will assess your circumstances to establish whether an IVA is the most appropriate solution.

Your Proposal

Your Proposal

Once you decide an IVA is the best solution your case will be referred to a licensed Insolvency Practitioner. Your case will be prepared and your IVA proposal will be created ready to present to your creditors.

Meeting of Creditors

Meeting of Creditors

Your creditors will vote whether to accept or reject your IVA proposal. 75% of voting creditors (by value of debt) must vote in favor of you proposal for your IVA to be accepted.

Your IVA

Your IVA

Once approved both you and your creditors will be legally bound by the IVA. As long as you maintain your payments during the IVA (typically five years) all outstanding debt will be written-off and you will be debt free.

DEBTS INCLUDED

  • Council Tax Arrears

  • Water Arrears

  • Unsecured Bank Loans

  • Student Loans

  • Store Cards

  • Rent & Mortgage Arrears

  • Phone Arrears

  • Payday Loans

  • Court fines

  • Catalogue Debts

  • Benefit Overpayments

  • Overdrafts

  • HMRC Tax Bills (self employed)

  • Gas & Electric Arrears

  • Credit Cards

WHY CHOOSE M1 DEBT SOLUTIONS?

Our aim

Our aim

To help you understand the options available to you and help you on your road to debt recovery.

Experienced team

Experienced team

We have over 10 years experience helping our customers improve their circumstances and deal with their debts.

Experts on

Experts on

Bailiff enforcement action; Council Tax arrears; court fines; parking fines; gas, electric and water arrears; debt consolidation; and all debt solutions.

Jayde – Reviews

Right from the beginning I felt reassured and confident he would be able to help me.

Jayde

Cara – Reviews

Now I can be financially free quicker and can move on without all the hassle from my creditors.

Cara

Tim – Reviews

Very professional. Very understanding and non judgemental.

Tim

Paul – Reviews

The process was simple from start to finish and all the leg work was done by M1 Debt Solutions so I never had to stress out trying to make contact with all the companies I owed to.

Paul

Julie – Reviews

When I contacted M1 I was in a really difficult place and their efficient, considerate handling of my situation was quite simply amazing.

Julie

Frances – Reviews

They took care of everything. Very professional.

Frances

Susan – Reviews

Amazing helpful people.

Susan

Nadine – Reviews

They were great from start to finish. I'm so happy with this service. Thank you very much.

Nadine

Tracy – Reviews

They dealt with my case very efficiently. They were very helpful and got me out of trouble with my debt and the horrible bailiffs!

Tracy

OTHER DEBT SOLUTIONS

Debt Management Plan (DMP)

Debt Management Plan (DMP)

Debt Relief Order (DRO)

Debt Relief Order (DRO)

Bankruptcy

Bankruptcy

IVA

Updated on 2019-07-23T13:26:08+01:00, by admin_m1.