"I just wanted to say a big thank you to you and your Debt Management Team. I am glad that I spoke to you and had the courage to open up to you. You have taken a great burden off my shoulders, and above all given me the peace of mind that I needed."
Angela, Derby
IVA FAQs
- What is an IVA and Which debts can be included?
- How much will i have to pay each month during the IVA?
- Do I have to pay any fees?
- Will I ever be able to get credit again?
“What is an IVA and Which debts can be included?”
Normally any type of unsecured debts can be included within an IVA. This rules out mortgages and secured loans. It also doesn’t include any items on hire purchase, which will be repossessed if you can’t afford the repayments.
Other debts which cannot be included in an IVA:
- Fines or penalties imposed for an offence
- Any liabilities arising under an order made in a family or domestic court action, such CSA claims for child support
- Any liabilities arising under a confiscation order made under S.1 of the Drug Trafficking Act 1986 or S.71 of the Criminal Justice Act 1988
- Most educational loans, as they fall outside of the Insolvency Act 1986
- Gambling debts.
Personal debts to HM Revenue & Customs and VAT can be included – but may be treated preferentially within the proposal. Debts such as Rent and Council Tax arrears and fines (such as parking offences) will normally have to be paid and provision for the repayment of these debts will be made separately.
“How much will I have to pay each month during the IVA?”
When we assess your financial situation we’ll go through your income and out-goings and work out what you can afford to pay each month after you have paid your essential living costs. This affordable monthly payment is what you will pay for a period usually 60 months (5 years).
“Do I have to pay any fees?”
You pay only the affordable monthly amount you and your creditors agree to under the terms of the agreement. Any fees are included in this amount.
“Will I ever be able to get credit again?”
During your IVA you have agreed not to obtain further credit. When your IVA is completed, it’s likely to remain on the credit reference databases for a further year.
Find out more about:
IVA Alternatives
IVA Case Studies
Further Debt Help and Advice
