What is an IVA? | Chiltern Debt Management

If you are struggling with the monthly repayments on your personal loans, credit and store cards, catalogues and other bills, you could be in serious financial difficulty. You may have heard of an IVA, as a possible solution, but you’re not sure what it means. If you are wondering what is an IVA, read on….

What is an IVA? – tell me more

If you have substantial unsecured debts, then an IVA may be the most appropriate solution for you. An IVA, or Individual Voluntary Arrangement, is a programme that allows you to re-arrange your debts into one, affordable monthly payment – without the need for a loan. The arrangement is over a fixed period of time, which is usually five years, but this can vary.

The arrangement will be drafted under the supervision of a licensed Insolvency Practitioner (IP). The IP will analyse your financial situation, income and outgoings, and will decide how much you will be required to pay into your arrangement each month. The IP will make the proposal to your creditors and, if accepted, will supervise the arrangement for its duration.

You will make your monthly repayments to The Debt People, and we will manage your arrangement and deal with your creditors from start to finish. Should you require our help or advice, during your arrangement, you can speak to one of our helpful and friendly team of professionals at any time. We will deal with everything else, including the distributions to your creditors and all correspondence with them, including phone calls and letters.

Once the arrangement has been satisfactorily completed, any remaining unsecured debt will be written off. You will be free to start living your life again, without the worry that out of control debt problems can bring.

If you are wondering what is an IVA or is it right for me then call us today on the freephone number at the top of this page. Your call will be free and in total confidence. For more information, on what is an IVA, click on this link.

Fees & Information

We cannot guarantee a reduction in interest or charges. If an IVA is not maintained it could lead to bankruptcy. Whilst initial debt advice is free, fees will be charged if a solution is taken out.

Fees related to Debt Management Plans are in two parts;

"Initial Fee" means your first two "Monthly Payments", which is paid by You to "Us". This represents our fee for establishing your arrangement, and therefore is not distributed to your creditors, and can be paid in two separate instalments. Retention of this fee will put you into further arrears.

"Monthly Fee" means the Fee payable for our Services each month. This is an amount equal to 17.5% of your "Monthly Payment" (apart from your first two "Monthly Payments" which is the "Initial Fee"), subject to a minimum payment of £30 for disposable incomes of 0 - £100, and £35 for disposable incomes of £100.01 - £200.

Fees incurred for Individual Voluntary Arrangements are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominees fees relating to assistance given to prepare your proposal and Supervisor fees which relate to the ongoing monitoring of your IVA. Fees are already included as part of your monthly contribution. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.

A record of your agreement with us will be held on your credit file for up to six years, and your ability to obtain credit in future may be affected.

You are provided a cooling off period of fourteen days from the date the agreement was deemed to commence, during which you may cancel our agreement. Should you give notice to us that you would like a refund of a payment, or payments, (being other than the initial fee) then where no distributions have, at that time, been made by us, or are in the process or course of being made by us, in respect of that payment or payments this will be made in full (i.e. without deduction of our fee of 17.5%).