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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21) I’m considering an IVA, but my creditors are taking me to court. Can this be stopped ?
When the IVA proposal is prepared, the court is notified. This is usually sufficient to stop proceedings. If not, your advisor will write to the court and the creditors concerned on your behalf. Further steps can be taken if necessary.
22) Will an IVA affect my ability to obtain further credit ?
Until an IVA is completed it is a fundamental requirement that you do not incur further credit. Once complete there is no reason why an individual cannot apply successfully for credit.
23) Who can I speak to if I wish to complain ?
We take complaints and customer service issues very seriously; should you feel the need to complain you can do so at our registered address. If you are not satisfied, you may take your complaint to any of the following:
24) Does the Insolvency Practitioner (i.e. ourselves) represent the Creditor or the Debtor ?
Neither. The role of the IP is to act as a go between to ensure there is a balance between what Creditors can reasonably demand and what a Debtor can reasonably be expected to pay.
25) Will I be able to hold public office Eg. Company Director ?
Unlike Bankruptcy, an IVA does not restrict your ability to hold positions such as a Justice of the Peace and Trustee of a School. However, there are certain restrictions in the case of a Company Director.
26) Can I arrange an IVA directly with my creditors ?
No. The arrangement takes the form of a contract that is legally binding. One of the key components of this is that your proposal of repayment is handled by a Nominee and the ongoing maintenance of the payment schedule is the responsibility of a Supervisor. In most cases the IP (Ourselves) will fulfil both of these roles.
27) Will I have to close my bank account ?
It is often good practice to arrange new banking facilities in order to establish a fresh start before embarking on an IVA. This is essential if your current banker holds a proportion of the debt that is to be placed in the IVA. Your advisor will let you have more information in respect of this.
28) Is it really true an IVA will guarantee to write off up to 75% of my debts ?
Yes, provided you keep to the terms of the arrangement, and all your debts are included in the proposal. Unlike debt management schemes, an IVA is a once and for all settlement of your debts (excluding the mortgages and secured loans).
It is essential that you include all your debt in the proposal. Any excluded creditors may challenge the validity of the arrangement.
Once the arrangement is successfully finished, your debts are written off permanently.
29) My partner/spouse and I have joint debts. Can they be considered together in the same IVA ?
Both of you will have to propose separate but linked IVA proposals. It also depends on how much debt is joint and how much you own independently of each other.
An advisor can discuss this with you.
30) How will an IVA affect my credit rating ?
An IVA will be on your credit record for six years, the same length of time as any other adverse credit information.
Disclaimer: The material on this website is for general information only and should not be relied upon make important decisions.