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EMPLOYEE
I’m
seeking assistance
What are the benefits of entering into an IVA? I am a little confused about which option is best for me. DMP or IVA (Individual Voluntary Agreement)?
Official
Response
-
- You usually only have to pay back part of your debt. At ClearDebt, if entering into an IVA, we can often reduce your total debt by up to 70% - and are usually able to cut it in half for the majority of all applicants.
- On the day your IVA has been approved by your creditors, you will stop paying interest and other charges on the amounts you owe – as long as you keep up the payments. This can save you thousands.
- Keep up the payments and you should be debt free within 5 years! By entering into an IVA, you will be able to take back control of your finances and find stability in your life.
- A ClearDebt IVA may be possible for people who owe as little as £11,000.
- You must have at least 3 or more lines of credit from at least 2 different creditors.
- You make one fixed monthly payment, rather than individual payments to each of your debtors.
- Once your IVA has been agreed, all your creditors are legally bound and cannot change their mind as long as you keep up the payments.
- All legal action by your creditors is stopped as soon as your IVA has been accepted and your creditors are not allowed to take any new or further legal action against you as long as you stick to the terms of the arrangement.
- Your IVA is not publicised in the local newspapers, unlike bankruptcy.
- Professional status is not at risk (i.e. Accountants, IFAs, etc)
- You will not have to sell your home (although if there is equity in your property you will be asked to make a contribution (not exceeding 85% of your net interest and subject to 85% LTV) from it within the last 6 months of the IVA. The amount you pay monthly, however, will not change).
- Once you have successfully completed your IVA, you will get a certificate of completion which will help repair your credit rating.
- Once the IVA is agreed, your creditors, by law, are no longer allowed to demand payments from you either by telephone or letter. Finally, you will feel a large sigh of relief as the telephone calls and payment demands will have stopped.
- If you undertake an IVA, it is a private matter between yourself and your creditors. No publicity in the local papers; however your name can be searched in the Insolvency Register which is available on the internet at: http://www.insolvency.gov.uk/eiir/ and therefore your situation will show up to anyone checking on your credit rating.
EMPLOYEE
-
- You usually only have to pay back part of your debt. At ClearDebt, if entering into an IVA, we can often reduce your total debt by up to 70% - and are usually able to cut it in half for the majority of all applicants.
- On the day your IVA has been approved by your creditors, you will stop paying interest and other charges on the amounts you owe – as long as you keep up the payments. This can save you thousands.
- Keep up the payments and you should be debt free within 5 years! By entering into an IVA, you will be able to take back control of your finances and find stability in your life.
- A ClearDebt IVA may be possible for people who owe as little as £11,000.
- You must have at least 3 or more lines of credit from at least 2 different creditors.
- You make one fixed monthly payment, rather than individual payments to each of your debtors.
- Once your IVA has been agreed, all your creditors are legally bound and cannot change their mind as long as you keep up the payments.
- All legal action by your creditors is stopped as soon as your IVA has been accepted and your creditors are not allowed to take any new or further legal action against you as long as you stick to the terms of the arrangement.
- Your IVA is not publicised in the local newspapers, unlike bankruptcy.
- Professional status is not at risk (i.e. Accountants, IFAs, etc)
- You will not have to sell your home (although if there is equity in your property you will be asked to make a contribution (not exceeding 85% of your net interest and subject to 85% LTV) from it within the last 6 months of the IVA. The amount you pay monthly, however, will not change).
- Once you have successfully completed your IVA, you will get a certificate of completion which will help repair your credit rating.
- Once the IVA is agreed, your creditors, by law, are no longer allowed to demand payments from you either by telephone or letter. Finally, you will feel a large sigh of relief as the telephone calls and payment demands will have stopped.
- If you undertake an IVA, it is a private matter between yourself and your creditors. No publicity in the local papers; however your name can be searched in the Insolvency Register which is available on the internet at: http://www.insolvency.gov.uk/eiir/ and therefore your situation will show up to anyone checking on your credit rating.
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