IVA Knowledge Base

Common questions answered about IVAs.

If you have a query not covered here, please call us or submit a question for confidential advice about your own set of circumstances.

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11) Can I cancel the IVA once it is set up ?

An IVA is a legal process and, once it is set up, cannot be cancelled. However it will fail if you do not comply with the terms and your supervisor may take legal proceedings against you.

12) What happens if the IVA is not approved ?

You will have to come to an informal arrangement with your creditors (or use the services of a debt management company) to repay your debts or declare yourself bankrupt. It is unlikely that we would make an IVA proposal without high confidence of acceptance.

13) How are debts with joint liability treated with respect to an IVA, when only one of the debtors is applying for the IVA ?

There is no simple answer to this. It is at the discretion of the creditors and dependent upon individual circumstances. The creditor involved will be able to pursue the other party.

14) I understand that the IVA company take their fees from monies paid into the IVA. But who pays the fees for of the setting up the IVA in the case of its rejection ?

If we proposed an IVA which is rejected, then we bear the cost. You are not charged a penny. We have a very high acceptance rate (98%) and would not propose an IVA when we thought it would not be approved. However, if the IVA fails because you pull out, you will be charged a fee.

15) How much will I have to pay into the IVA ?

Monthly payments depend upon your disposable income rather than size of debt. This is what you have left with after reasonable monthly living expenses (excluding your debts) are taken from your monthly income. This figure will depend on your personal circumstances and will be agreed between you and your advisor. Normally the monthly payment will not be below £200

16) Can I keep using my credit cards or take out a new loan during an IVA ?

No, During the IVA, you will not be able to use store or credit cards. Also, you will normally not be allowed to borrow more money. It may however be possible to change an existing mortgage while you are in an IVA. This must under the supervision of your insolvency practitioner (us).

17) If I have positive equity in my property, how does this affect my IVA application ?

If you have any equity in your property (or any other significant valuable assets), you may be required to release some or all of this as part of the IVA agreement.

18) What is the minimum number of Creditors required for an IVA ?

Usually 3 or more – but your advisor will talk you through it.

19) What if I unexpectedly come into some money during the IVA ?

This is usually called a windfall, for example, winning the lottery, an inheritance or large bonus payment. Your IVA will usually include a ‘windfall’ clause that will require you to pay the money into your arrangement. In the event of bonus payments, or regular overtime, depending on their value, typically you will be required to share the benefit on a fifty-fifty basis with your creditors.

20) In terms of % amount of total debt. How many creditors need to attend the creditors meeting ?

Usually creditors do not attend the meeting, they vote by proxy, (meaning they register their vote without being there). Only one proxy is required.

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Disclaimer: The material on this website is for general information only and should not be relied upon make important decisions.