Frequently Asked Questions
Individual Voluntary Arrangements
Will an IVA cost me more than going bankrupt?
The costs of an IVA are likely to be more than going bankrupt. Creditors view that the benefits of an IVA - particularly keeping control of your assets are worth paying for and as such will expect you to pay more into an IVA than would be the case by going bankrupt. There are also differences in how payments would be made. Under a bankruptcy you would first need to find £500 to make yourself bankrupt. If then you do have a surplus income a proportion of this would have to be paid to your creditors for a period of three years. By comparison with an IVA your payments are likely to last for about five years unless you can agree to an earlier settlement.
Is an IVA the right answer to my debt problem?
When should I consider an IVA?
How much will I need to pay into my IVA?
Will my creditors accept my offer?
What minimum payments do creditors accept into an IVA?
Will I really be debt free at the end of an IVA?
Will I be able to borrow money during the IVA?
What happens if I get a big pay rise or win the lottery or some other type of windfall?
Will people know about my IVA? Will it go into the local papers? Will my employer know?
How difficult will it be to get credit again?
Will an IVA cost me more than going bankrupt?
My wife or partner has debts but their debt is under control. Will they need to pay into my IVA?
What fees do you charge and how do you get paid?