How to Set up an IVA (UK)

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How to Set up an IVA (UK)

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If you live in the United Kingdom and have found yourself in a lot of debt and have been advised to use an IVA (Individual Voluntary Arrangement). Before making a decsion they are certain things that you should know and take into consideration. See steps below.

Steps

The process of starting an IVA is a relatively simple process carried our by a Licensed Insolvency Practitioner. There are lots of Licensed Insolvency Practitioners in the UK. Many are very expensive and will not consider even talking to you until you have paid them a fee.
You must have UK debt in £ (pounds sterling).
You must be a resident of England, Wales or Northern Ireland.
You must be insolvent. This means you are having difficulties paying your debts or your debts are more than the equity in your home.
You debts must be over £15000.
Gather together a list of all unsecured debts such as loans, overdrafts, doorstep loans, credit cards, visa cards, student loans, tax debts, store cards and catalogues.
The minimum you can pay back per month is £200 per month. Creditors need to see at least 25% of their money back before they will consider starting an IVA for you.
You have to be in regular employment and show that you can pay for all your living expenses.
Make sure that you are with a specialist when you are filling our forms, to ensure it is done correctly and nothing is missed. Always keep a photocopy of the application for your records.
Now you need to wait for the local magistrate to attach a claim number to arrangement application. At this stage your insolvency practitioner is proposing to the government that you can pursue this course of action.
You insolvency practitioner will also have contacted your creditors to ask them to accept an individual voluntary arrangement.
Hopefully you will be accepted and you can start to move on with your life and get your debts paid off as quick as possible.

Tips

Please note that if you are self employed you can include your business debts too such as trade suppliers, HM Revenue and Customs income tax and VAT

Warnings

Make sure you use a reputable company and beware of some debt Management firms and insolvency practitioners offering free home consultations. You should exercise extreme caution in letting some of these people into your property.