Why use an IVA?
A legally binding way to reduce the amount that you pay back.
A way to stop any further interest charges.
A way to reduce your monthly repayments.
This means more money in your pocket at the end of the month.
What is the procedure of an IVA?
- You complete and return their standard application form together with copies of all recent bank statements.
- On receipt of your questionnaire one of our consultants will contact you in order to talk through your application.
- If our case meets our standard criteria you will accept into the IVA programme and referred to one of our panel members.
- The panel member will now act for you and will then contact all your creditors informing them that they are now your legal representatives.
- Based on the information provided by you an IVA proposal will be draughted, this is a written agreement, which sets out the actual terms of the IVA.
- In order to legally protect you from your creditors a form of legal protection called an “interim order” is granted. This is a process, which enables full protection from your creditors.
- Once the Interim Order is granted no legal action may be bought against you. Having an interim order means you are fully protected from creditor issuing or continuing bankruptcy proceedings.
- The panel member then prepares a statement called a “nominees Report” which portrays a professional opinion as to whether the IVA is a bona fide offer.
- Shortly afterwards a meeting of creditors is held. In theory this meeting consists of all the creditors gathered in a room to discuss the IVA. In practice, however, creditor rarely attends because all voting is done prior to the meeting.
- Once the IVA is approved you are legally contracted to keep up your monthly IVA payments. Once accepted your creditors will never bother you again. This monthly payment will be easily affordable because it is based on your disposable income.
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health.
This procedure is not to be confused with the informal procedures being dished out by non-regulatory organisations as advertised on television and in the daily tabloids. Those other organisation have already been adversely criticised by Watchdog.
Cancellations and Cooling off period for IVA’s
You can cancel your proposed IVA without charge at any point before your proposal is sent to creditors. After this time you can still cancel but we reserve the right to charge an administration fee.