Entering into an Individual Voluntary Arrangement can often result in the end of financial heartache brought on by unmanageable levels of unsecured debt. However whilst there are many advantages to an IVA there are disadvantages and as such this page aims to deal with those matters. However please remember that every case is different and rests on its own merits. To be sure of how your case would be treated please call us on 0800 037 0053 so that we can discuss your issues further.

Once an IVA is approved this doesn’t mean that this is an end of your financial responsibilities as it could fail later on for unexpected reasons. If an IVA fails then your creditors could still demand that you are made bankrupt. It is for this reason that every IVA that we put forward is based on realistic proposals which are agreed by you.

An IVA will affect your credit rating. Unpaid debts will affect your creditworthiness, whether or not an IVA is used to deal with your financial problems. However, if an IVA is successful, that fact will be recorded on your credit file and this may be more favourable to you from the point of view of any future credit provider.

If our advice to you is that you should consider an IVA as the way forward then it will no doubt come as no surprise to you that we will be paid for the work involved. However we will only get paid if your IVA is approved. If your IVA is rejected by your creditors you will not pay us a penny. When we put together your IVA proposal you will see in the documents that we prepare on your behalf how much we will be paid for your case. Each IVA has 2 parts and we will make a charge for both of these. When we are putting the proposal together we will act as your Nominee and we will charge a set fee for this work. How much will depend on the individual case concerned. After your case has been approved we will then take on the role of Supervisor. Again there will be a fee for this role which should last for 5 years. Our Supervision fees are charged by us a percentage of the monies that we collect from you during the term of the arrangement. As such if we do not collect anything from you then we will not be paid anything.

In an IVA you will make one monthly payment for a period of time, normally 60 months. Your creditors when voting to accept or reject your proposal will also vote on our fees which will come out of the total monies paid into the arrangement. As such it is your creditors who have the final say over how much we will charge for an IVA, and whatever our fees are they will not affect how much you pay into your arrangement.

IVA Small Print is a post from: TheDebtPeople.co.uk