IVA Help UK Introduction
An IVA is a solution provided by the government aimed to help UK residents with outstanding debt.
‘IVA’ stands for Individual Voluntary Arrangement. An IVA will assist you if you need guidance and parameters in your personal finance.
This article will provide support for people in, or looking to get into an IVA as a solution to their debts. We aim to help you take back control of your economic future by covering the management of an IVA, information on the types of debt involved and residential arrears.
We’ll make the whole process clearer, making sure that you are moving forward towards financial stability and success.
Understanding Individual Voluntary Arrangements (IVAs)
If you are struggling with debt, cost-effective payment options are provided to you when in an IVA.
Your repayment to the creditors will be made affordable, fixed and reliable. Creditors will also be legally obligated not to take legal action against you and you will receive protection from bailiffs.
Insolvency practitioners (IPs) will handle your finances once you enter an IVA. They will distribute your repayments across a five year or 6 year period in a legally binding contract. IPs are trained and licensed professionals in formal insolvency procedures.
What You Need to Know About IVA Help UK
– An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors.
– All outstanding are aggregated into one bitesize, monthly installment. This will fit around a discussed budget so you are left with enough money each month.
– It will take five years to make you free of debt. It gives you more control over repayments while assuring creditors they will get their money back.
– IVA are mutually beneficial for both parties.
– Interest on unsecured debts like credit cards will be frozen for the duration of the IVA agreement.
– Your assets are protected once you enter the IVA agreement.
Pay Off Your Debts with IVA Help UK: Which Debts Can and Can't Be Included?
If you’re looking for a way to pay off your debts and become debt-free, IVA Help UK could be the solution for you.
With an IVA, most unsecured debts can be included in the agreement as part of an affordable monthly repayment plan. This makes it easier to manage your finances, It keeps on top of repayments without fear of further repercussions from creditors.
However, some debts cannot be included in an IVA:
– Student loans.
– Any debt owed to someone related to you by blood.
– Childcare arrears
– TV license arrears
– Maintenance arrears, ordered by a court.
It’s important to seek expert advice before setting up an IVA to know exactly what is, and what is not covered.
Find out more about IVAs today with IVA Help UK here on mymoneyoffice.
Dealing with Mortgage and Rent Arrears
Managing mortgage and rent arrears can often be overwhelming for those facing financial difficulties.
Rent Arrears
Whether or not rent arrears owed to your landlord can be included in an IVA depends on the type of landlord. If you rent from a private landlord, it is unlikely that you can include the arrears in your IVA as the landlord may evict you if you do not pay.
An IVA can help you free up some money by reducing your other debt payments, which can then be used to negotiate a suitable repayment plan with your landlord.
On the other hand, if you rent from a council or housing association, any current rent arrears you have can be included in your IVA.
It is important to maintain your normal rent payments and avoid accumulating more arrears to avoid being evicted. Rent payments should always be considered a priority when creating a budget for living expenses.
Mortgage Arrears
Typically, an IVA does not cover your current mortgage, and you must continue to make your mortgage payments as usual. If your mortgage payments change due to factors such as fluctuations in interest rates, you can reach out to your supervisor to modify your IVA payments accordingly.
Unfortunately, once in an individual voluntary arrangement (IVA) it’s unlikely you’ll be able to get a new mortgage.
How an IVA Can Relieve Financial Pressure on Your Household Income
IVA help UK is a suitable method to help relieve the economic burdens on your household monthly income.
Through IVA, your creditors can’t proceed with any legal action against you. An IVA will assist you in managing your household resources without any further consequences.
In addition, interest on unsecured debts will be frozen for the duration of the IVA agreement removing pressure. All repayments will stop at an agreed date resulting in you usually paying less than the full amount you owe.
Step-by-Step Guide to Setting Up an IVA
Getting out of debt can seem like an impossible task, but with the right help and advice, it can be a straightforward process.
An Individual Voluntary Arrangement (IVA) could be the perfect solution. Here’s how to set up with IVA Help UK:
Speak to an IP (insolvency practitioner) to assess your situation and to find out which debts are eligible.
- Create a payment plan detailing what you’ll pay each month over 5 years or 6 years.
- The IP will finalise, approve and send the plan for consideration by creditors.
- 75% of creditors must accept the plan for it to become legally binding.
- Your IP can change payments if major changes occur during the IVA term.
- Write-off remaining balances at the end of the IVA term, leaving you debt-free!
By following the steps above, getting out of debt will be tough but not impossible. IVA help UK is designed to elevate your chances.
Use our free Solution Finder to find out more about setting up an IVA arrangement!
What to Do If You're Struggling to Keep Up with IVA Payments
What happens if you need support with the payments of IVA? In that case, acting quickly and taking the necessary steps to avoid potential consequences is crucial.
Here are some tips for what to do if you’re struggling to keep up with IVA payments:
- Keep in close touch with your IP throughout the IVA process.
- Discuss any changes to your income or financial situation that may have impacted your ability to make regular payments.
- Review your budget and consider reducing expenses such as food shopping, utilities, mobile phone bills, etc.
- Talk to your creditors and see if they can offer any payment holiday options or flexible repayment plans.
- Speak with debt experts who may be able to help you come up with an alternative solution.
Expert Advice and Support for Setting Up Your IVA for Free
Finding the right support and advice when setting up an IVA is vital. It’s important to take your time and research your options before making any decisions. An IVA will last between 5 – 6 years so it is very important to get right.
The best way is to speak with a financial advisor, debt counsellor or an IP to get tailored advice on your individual circumstances. Attending online seminars, webinars, or forums hosted by debt charities can also provide useful information.
Finally, you can also contact your local council for assistance finding solutions to your financial issues.
Conclusion
Before committing to an IVA, it’s important to seek expert advice so that you know exactly what the process is and how you will go about it. With the right advice and help, you could be debt-free within five years!
Use our free Solution Finder to find out more about setting up an IVA arrangement.
