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Frequently Asked Question's

Will an IVA have an affect on my credit file?

Your credit file will be affected for 6 years from the commencement of your IVA.

Each case is different and will depend on the amount you are able to afford.

Once the process is started it will depend on how fast you are able to provide the information. Typically it will be between 4 and 8 weeks.

We remain in contact with the creditors and answer any queries they may have during the voting process.

Once the IVA is approved we will confirm this in writing and contact you regarding making your first payment which must be within 30 days of approval.

Only unsecured debts can form part of your IVA so mortgage and HP payments will be built into your IVA as allowable expenses which you will need to maintain.

Homeowners with equity may be asked to release this by remortgaging their property in the 5th year of the IVA or if not possible to extend the IVA for up to a further 12 months

Your creditors will be asked to vote as to whether they accept your proposal. If at least 75% in value of those creditors who vote accept the IVA then it is approved. We remain in contact with the creditors and answer any queries they may have during the voting process

Your Supervisor will contact you on a regular basis to update your circumstances and check you can still afford your IVA contributions.

If you receive any redundancy payment you may be able to retain some of it but the balance will be paid into your IVA. It may be possible to amend the terms of your IVA with approval from the creditors if your circumstances have changed.

An IVA is entered on a Public Register.

You will be able to retain an inexpensive priced car and any HP payments will be built into your IVA as an allowable expense so you will need to maintain them. Any savings will have to be made available for your creditors.

On satisfactory completion you will be issued with a Completion Certificate to demonstrate that your IVA is complete.

The IVA proposal will demonstrate that it will provide a better return than Bankruptcy so that will appeal to the creditors.

Once your IVA is approved and the creditors have recorded this on their records then you should not have any further contact from them.

Your personal pension will not form part of your IVA but there may be a restriction on the level of contributions.

You will be expected to pay any inheritance into your IVA up to the amount still due to your creditors. It may be possible to retain a small portion to cover essential expenditure.

You will be unable to obtain further credit in excess of £500 without the authority of your IVA supervisor

The majority of IVA's are for a period of 5 years after which you should be debt free.

Stephen Mark Quinn is licenced as an insolvency practitioner in the UK by the Institute of Chartered Accountants in England and Wales.

Barrington Shepherd Ltd. Registered in England and Wales. Registered office, Barrington Shepherd Ltd. The Granary, 50 Barton Road, Worsley, Manchester, England, M28 2EB. Company Number 09962982

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