Mon-Fri 8am-8pm Sat 10am-7pm
0800 043 3328

Start your debt free
journey with us

What is an IVA?

What is an iva?Put simply, an IVA (short for Individual Voluntary Arrangement) is a formal insolvency solution that can help you deal with debts that you cannot afford to pay. It may be suitable for you if you are struggling to keep up with your monthly debt repayments.

Because an IVA is a legal arrangement, it must be negotiated with the help of a professional called an Insolvency Practitioner who will liase between you (the debtor) and the people you owe money to (the creditors).

An IVA allows you to pay back what you can afford towards your debts. The remaining debt is only written off when you complete your IVA.

How does an IVA work?

With the help of the Insolvency Practitioner you agree to pay off a percentage of your debt over a given period of time, by means of affordable repayments (normally over 60 months). The Insolvency Practitioner works out what you can afford to pay each month by analysing your income, expenses and your debts. They are responsible for setting up and negotiating your payments with your creditors.

An IVA is a completely legally binding process governed by The Insolvency Act 1986. When your creditors agree to an IVA, both you and they are bound by the terms of the arrangement.

Can I set up an IVA?

An IVA is only suitable for people in certain circumstances. You must be deemed insolvent or unable to pay your debts as they fall due. The criteria below outlines if an IVA might be a good solution for you:

  • You are struggling with your monthly debt repayments
  • You feel you cannot afford to pay your debts
  • You owe money to 2 or more creditors (in some cases this can be only 1 creditor)
  • You will need a surplus income each month (after living expenses, but excluding debt payments)

Every IVA is unique. Your monthly payments are determined by things like your employment, income, expenditure, number of debts and your living situation.

Your IVA will be successful if more than 75% (by debt value) of the creditors involved agree to the terms of the arrangement. Click here to read our IVA FAQ for more information.

NOTE: We will only put forward an IVA proposal if we believe it will be accepted by your creditors. We do not charge upfront fees for setting up your proposal, so in the unlikely event it is not accepted by creditors, you wont have to pay a single thing. Be wary of companies charging fees for your IVA proposal. You could end up paying £100's for a proposal that is not accepted.

IVA Pros and Cons

As with any formal insolvency solution there are both pros and cons. You must make sure to consider everything carefully before you enter into this kind of arrangement. We have detailed the main pros and cons below.

Pros of an IVA

  • An IVA consists of 1 easy affordable monthly payment which is distributed to your creditors on a pro rata basis.
  • Any remaining debts are written off on completion of the IVA.
  • An IVA offers you protection from creditors.
  • Creditor pressure stopped as creditors must deal with us.
  • You will usually be debt free in 5 years, or
  • You could be debt free in as little as 1 year if you can offer a lump sum payment.
  • All interest and charges are frozen when your arrangement is accepted.
  • Suitable for tenants or homeowners, individuals or couples, and even business owners.
  • Your credit rating is affected, but it will start to repair after your IVA is finished.
  • We can setup an IVA in as little as 4 weeks.
  • We do not charge any upfront fees, saving you £100s.

cons of an IVA

  • If you are a homeowner with equity in your property you may be required to introduce part of your share of this equity in the final year of the arrangement. A remortgage may be restricted and on less favourable terms. If you can’t get a remortgage your arrangement can be extended for up to another year.
  • If your circumstances change, and your insolvency practitioner can’t get creditors to accept amended terms, your IVA is likely to fail. You will still owe your creditors the full amount of what you owed them at the start, less whatever has been paid to them under your IVA.
  • If your IVA fails, your creditors may request that you be made bankrupt. This will always be discussed before your arrangement commences.
  • Your credit rating may be impacted for up to six years from the commencement of your IVA.
  • Repaying debt over a longer period may increase the total amount to be repaid.

the IVA process

STEP 1: When you contact us we will have a chat about your current situation, including an assessment of your income, outgoings and your debts. We will let you know all options available for addressing your debts.

STEP 2: If you decide that you want to proceed with an IVA, our Insolvency Practitioners will begin working on your IVA proposal. We will only put forward a proposal if we think an IVA is the best solution for you and if the majority of your creditors will accept it.

Your proposal will state your proposed plan of repayment to your creditors. The repayment structure is normally 60 monthly payments, but you could do a lump sum IVA depending on your circumstances.

STEP 3: Once all has been agreed with you, a copy of your proposal is sent to your creditors. We then gather their votes to accept or reject the proposal. If your IVA is approved, your payments can begin with your confirmation. It's as simple as that.

We will remain with you at every stage throughout your IVA should you need to contact us. All communication with your creditors can be done through us.

NOTE: Anything we discuss is done so in total confidence and is with no obligation.

1: If you are struggling with debt repayments then don't wait. Do something about it as soon as possible and get in touch with us at McCambridge Duffy.

2: If you don't think an IVA is right for you, then feel free to contact us for some free debt advice on what other options may be available for you; such as Bankruptcy or Debt Management.

Why choose McCambridge Duffy for an IVA?

Reputation and Experience

Having been in Business for well over 80 years, we are one of the UKs leading IVA Providers. We specialise in both personal and Business IVAs. We have a dedicated team of staff and In-House Insolvency Practitioners who are well known for their exceptional Customer Service.

High Acceptance Rate

We have an amazing acceptance rate for IVAs proposed. We know any IVAs we propose will have a great chance of being accepted. We also fight very hard for every client to make sure their IVA proposal is carefully considered by the creditors. Our proposals will always be based on something that is affordable and because of this every IVA we propose will be unique.

Customer Service

We have an excellent customer care team. We are a family run company and our advisors have all been with us for many years. They are highly trained and will be able to answer any question quickly and professionally. You will also find us very friendly.

Fast Set Up

We get to work on your case immediately. We can have your IVA in place in 4 weeks.

No Upfront Fees

Unlike our competitors, we do not charge any upfront fees for the services we offer, saving you both money and time, which you need if you are opting for any of our debt solutions.

IVA fees

1: It is free to set up an IVA with McCambridge Duffy. We do not charge any upfront fees for drafting and submitting your Proposal. We only put a case forward if we believe it will be a successful one for both you and your creditors. If however, in the event that your IVA proposal is unsuccessful, then you will not be charged a penny.

2: IVA fees are determined by creditors (no matter which provider you use), so if your IVA application is successful, the only thing to worry about is whether you have chosen the right Insolvency Practitioner.

3: All IVA fees are taken out of your affordable monthly payment or from your agreed lump sum payment, so you will never be asked for additional fees or receive a bill from us.

4: We are the longest established IVA provider in the UK and have thousands of happy clients. We also have one of the highest success rates in the industry.

5: We have 4 full time highly regulated Insolvency Practitioners giving us a wealth of experience and knowledge (most other providers have just 1 or 2), so we have probably seen all possible circumstances.

Call us now on 0800 043 3328 for some free and confidential IVA advice.

 

Get IVA Advice

* All info sent is private & confidential

Great Service & support from the first phone call

" McCambridge Duffy have been great, completely open, honest and non-judgemental from the first phone call. Kept me fully informed through every stage, always did exactly what they said they would and always got back to me promptly. Fully recommended."

IVA Payment Calculator

IVA payment

Work out what your new monthly IVA repayment could be by filling in our debt and budget calculator form.

IVA Payment Calculator

IVA Example

iva example

In the IVA example pictured above, our client was struggling with payments of £600 per month to their creditors. We were able to reduce the payment to £240 per month. After 60 months of paying this reduced amount, their IVA will be complete. Any remaining debts will be written off and they will be able to start over debt free.

Got a question?

Click on the button to type a message to one of our live chat advisors. We are available now to answer any of your questions.

Click to chat now

Speak to us to see if you can reduce your debts

freephone 0800 043 3328

» IVA Articles from McCambridge Duffy

IVA and Bankruptcy statistics

Back in 2012 we noticed a significant swing away from bankruptcies and towards Individual Voluntary Arrangements or IVAs. It is interesting to look at what has been happening since then and particularly whether that trend has been sustained. The short answer is that it has and the numbers of individuals choosing bankruptcy continues to decline […]

Why creditors might reject your IVA

Incorrect financial information Creditors take it for granted that you are truthful in your IVA Proposal about your current financial circumstances and how they arose. They expect you to be open, frank and honest and to disclose all relevant facts about your income, expenses, assets and liabilities. If a creditor is aware that you are […]

Debt Management to IVA

There are a huge number of people in Debt Management Plans in the UK. Many of them have varied circumstances as to why they are in Debt Management over other solutions. Some may be solvent but to pay off their debts in full in accordance with the terms on which they borrowed the money in […]

Can I Do an IVA with no money?

If you are insolvent and have no assets and/or no disposable income can you still do an IVA or to put the question a little differently, is there any chance that creditors will accept your proposal for an IVA if you have no money? Incredible as it may seem, the answer is yes, provided you […]

Pros and Cons of an IVA

Looking at an Indivudal Voluntary Arrangement (or IVA) through the eyes of the insolvent debtor (the person in debt) reveals the pros and cons of the process. Once an IVA is accepted at the meeting of creditors, the debtor can look forward to enjoying a considerable number of advantages, provided they adhere to the agreed […]

© 2016 McCambridge Duffy Insolvency Practitioners.
All rights reserved

McCambridge Duffy LLP is a Limited Liability Partnership registered in England and Wales.
Registered number 0C309544
Registered office 17 Hanover Square, Mayfair,
London, W1s 1HT