Q: |
Which debts can be included in an IVA? |
A: |
Usually any unsecured debts can be included in an IVA. This excludes and mortgage or secured loan agreements, plus any Hire Purchase items, as these may be repossessed if you do not keep up the payments on them. Individual debts to the Inland Revenue and VAT can alsio be included. |
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Q: |
Which debts cannot be included in an IVA? |
A: |
Magistrate fines- such as parking violations or Council Tax arrears, most Student Loans taken out after June 2004, as they are not included in the Insolvency Act of 1986, and CSA payments and/or arrears. |
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Q: |
Will I have to pay any fees? |
A: |
Any fees will be included in your monthly payments to us. In other words your creditors will bear the cost of your IVA. |
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Q: |
Will I lose my house? |
A: |
If you have equity in your property, you may be asked by your creditors to release some funds at some point during the IVA, but you should not be forced to sell your home. |
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Q: |
Can one creditor refuse to accept an IVA? |
A: |
One creditor can put a stop to the IVA if they are owed more than 25% of your total debts. If 75% or more of your creditors agree, then the rest are bound by the arrangement. |
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Q: |
Can an IVA be settled early? |
A: |
An IVA can be settled early with a lump sum. Creditors are normally happy to accept this as it means that they do not have to wait for their money. |
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Q: |
Will an IVA put a stop to any action pending from my creditors? |
A: |
You are protected under an IVA from all creditors included on it.
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Q: |
Can I take further credit when I am on an IVA? |
A: |
No. During an IVA, you will not be able to borrow any further money. But it is, however, possible to change and already existing mortgage, under the supervision of the Insolvency Practitioner.
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Q: |
What is the minimum number of creditors needed for an IVA? |
A: |
Usually three or more. |
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Q: |
Will an IVA affect my ability to obtain credit in the future? |
A: |
Once an IVA is successfully completed there is nothing to stop you from applying for further credit. |
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Q: |
Can I obtain an IVA if a Bankruptcy Order has been made against me? |
A: |
Yes, if you are not a discharged bankrupt. It is possible to annul the bankruptcy order and enter in to an IVA if it is more appropriate. |
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Q: |
Do I have to meet an Insolvency Practitioner? |
A: |
You don’t have to, but we know that entering into an IVA is a big step, and many of our clients like to meet the people who will be helping them out. |
