Frequently Asked Questions

How long does it take to set up an IVA?

It typically takes between 6 and 8 weeks to set up an IVA.

Will interest and other charges be stopped while the IVA is being set up?

No, but any interest and charges will be included in the IVA if it is approved.

Can I lose my home?

No. However if there is equity available in your house this may at some point during the IVA agreement be included in an offer to your creditors.

How am I affected if I am self-employed with my own business?

Individual Voluntary Arrangements were bought in as part of the Insolvency Act 1986 to help business owners struggling with debts. So unlike being declared bankrupt, your business and any business activities will not be affected.

As I am a professional person how will it affect my job?

No matter what profession you work in you will be still eligible to enter into an IVA without any affect on your employment whatsoever.

If I enter into an IVA will it be advertised in any way?

No unlike bankruptcy, it is a very confidential process. Only your creditors will be aware of your position.

How long will my IVA last?

An IVA normally lasts for five years but this time can become shorter depending on your individual circumstances.

Which debts can be included in an IVA?

The following types of creditor can be included in your IVA:

• Banks
• Finance Companies
• Credit Cards
• Store Cards
• Charge Card Companies
• HM Customs and Excise (VAT)
• Inland Revenue

However, the following types of debt cannot be included in your IVA: Mortgage, Hire Purchase agreements, Student Loans (if taken after 1st September 2004), Fines, Maintenance and Child Support arrears.

I have received a Statutory Demand can I still enter an IVA?

Yes. The Official Receiver will consider whether the IVA is more appropriate.

Can I obtain an IVA if a Bankruptcy Order has been made against me?

Yes. It is certainly possible to annul a bankruptcy in favor of an IVA.

What if I struggle to keep up the payments on my IVA?

Full bankruptcy proceedings may begin if you default on your monthly payments initiated by your Insolvency Practitioner.

What happens once I finish paying my IVA?

Within 3 months of the final payment the Insolvency Practitioner will issue you with a 'Statement of Completion' and also issue a copy to the Insolvency Service so that they can amend their records.

Can I enter into an IVA if I am not a homeowner?

It makes no difference whether you are a tenant or homeowner or if you are still living with your parents.

Will my creditors accept my IVA proposal?

You will have to declare yourself bankrupt. Alternatively you can come to an informal arrangement with you creditors to repay your debts through a Debt Management Plan where we can put a fresh proposal for offers of payment in place.

If my IVA is accepted can my creditors still take further legal or recovery action?

No. Once the IVA is in place, you are protected from further legal or recovery action by your unsecured creditors as long as you do not break the terms of the IVA agreement.

What if my circumstances change during the term of the IVA?

If you cannot maintain your monthly payments due to a change of circumstances, your supervisor can request a variation to reflect your new circumstances.

Can a creditor take further recovery action before the IVA is approved?

Yes. However you can apply to the courts for an Interim Order to stop any of your creditors taking further recovery action until the outcome of your creditors meeting is known