Individual Voluntary Arrangements (IVA) and Debt help
Welcome to the Baines and Ernst IVA information page. This page is packed full of facts about how an IVA can help you with your debt problems. Baines and Ernst believes in giving you access to as much information about the IVA process so you can make a well informed decision.
What is an Iva or Individual Voluntary Arrangement?
Who Can Benefit from an IVA
Baines and Ernst arranged IVA
The Key Components of an IVA
An overview of how an IVA Works
Read how an IVA helped one of our customers
Read Frequently Asked Questions about IVAs
- Single monthly affordable payment that is fair to you and your creditors.
- BECOME DEBT FREE in 60 MONTHS or LESS*
- ALL INTEREST CHARGES STOPPED ON AN IVA*
- The IVA is discreet and can be used by professionals, forces personnel and police forces without damaging career prospects
- Baines and Ernst Provide a FREE Confidential Assessment
- Once the IVA is complete, you may be able to borrow again. However, it may take some time for your credit rating to repair as it will be seriously impaired. Information regarding your IVA (if approved) will remain on your file for up to 6 years after its completion.
- Protection from court action by creditors.
- Consolidate ALL UNSECURED DEBTS to ONE SINGLE PAYMENT*
What is an IVA or Individual Voluntary Arrangement?
A Voluntary Arrangement sometimes referred to as an Individual Voluntary Arrangement or IVA is an agreement with your creditors to make a single reduced payment each month. This lasts for an agreed period of time (up to 60 months*). Once agreed, creditors are not allowed to add interest or charges to your accounts by law. The agreement is fixed; meaning that creditors cannot randomly demand changes to it.
An IVA is a legal contract between you and your creditors, it is a legally binding arrangement supervised by a Licensed Insolvency Practitioner, the purpose of which is to enable you to reach a compromise with your creditors and avoid the consequences of bankruptcy.
The IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise should offer a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt. . What’s more an IVA is a private arrangement – nobody needs to know about it apart from you, your advisors and your creditors. An IVA ensures that your home is protected and your job should not be at risk.
You make one single manageable monthly payment, based on your agreed budget. Within 60 months the remaining debt is written off by your creditors, leaving you debt-free.
However, under the terms of the agreement you undertake to contribute as much as possible within your budget. So in reality, an IVA presents an opportunity for you to pay whatever you can in a manageable way – a way you can afford.
Please see Pros and Cons of an IVA.
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Who can Benefit from an IVA
An IVA is available to individuals, Sole Traders and Partners who are experiencing creditor pressure due to payment difficulties and it is used particularly by those who own their own assets and property and wish to avoid the possibility of losing it in the event they were made bankrupt.
It is also often used by sole traders and Partners who have suffered problems with their business but wish to secure its survival as they believe it will be profitable in the future which will enable them to make a greater repayment to creditors than could otherwise be expected were they made bankrupt and the business consequently cease trading.
An example of how an IVA was able to help one of our customers:
Name: Mandy
Job: NHS employee
Debts: £45,000
“I was struggling financially each month. Living on ‘credit’ had become a way of life for me; I needed help so I contacted Baines and Ernst. I had never heard of an IVA and was not aware that such help existed for people who were genuinely struggling with their debts. Baines and Ernst ’s trained advisers thoroughly explained all of the aspects of an IVA and I knew it was the best option for me. My monthly repayments were reduced to an affordable single repayment, all interest, charges, collection and legal action were stopped. Suddenly my life improved and I felt I had taken the first steps to regaining control of my finances.”
How an IVA restructured Mandy’s payments:
Mandy was struggling to Pay: £574
Her new restructured affordable IVA payment: £356
The affordable monthly payment difference: £218
Click Here for Frequently Asked Questions about Individual Voluntary Arrangements (IVA’s).
Baines and Ernst arranged IVA
- Fixed repayment period (normally no more than 60 months*) with a specific end date.
- Single monthly affordable payment.
- Once approved creditors must freeze all further interest and charges.
- Once the final payment is made, any outstanding debt is legally written off by the creditors.
- Creditors cannot go back on the agreement and demand increased payments unless your income increases.
- Protection from court action by creditors.
- The IVA is discreet and can be used by professionals, forces personnel and police forces without damaging career prospects
- The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.*
- Once the IVA is complete, you may be able to borrow again. However, it may take some time for your credit rating to repair.*
- During the course of the IVA, you may have to release available equity from any property that you own to increase the overall settlement offer to your creditors.
Key Components for a Successful debt help
- The IVA must offer a higher return to creditors than could otherwise be expected were the Debtor to be made bankrupt.
- An honest declaration of your assets and/or anticipated future earnings should be made. Material or false declarations are likely to result in the subsequent failure of the IVA.
How a Baines and Ernst arranged IVA Works for you
1) Proposal submitted to court with a view to obtaining an Interim Order.
2) An Interim Order is issued by court stopping creditors from taking any action against you whilst a meeting of your creditors is called and held to decide whether the proposals are acceptable to them or not.
3) The following information will need to be gathered and presented as part of your IVA file:
- The Nominee’s comments on the debtor’s proposals
- The Proposals
- Notice of the date and location of the meeting of creditors to vote on your proposals
- A Statement of Affairs that lists your assets and liabilities and your income and expenditure
- A background statement that explains the circumstances that culminated in the IVA being required
- A schedule advising creditors of the requisite majority required to approve the IVA
- A complete list of creditors
- A guide to the fees charged by the Supervisor following approval of the IVA
- A form of proxy for voting purposes
