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IVA Kent - Advice, Information & Solutions

38 Helped Today! - 31/03/20

If the amount of debt you have is more than £10,000, you may be able to apply for what is known as an Individual Voluntary Arrangement (IVA) to help repay it.

An IVA Kent is a fixed term repayment plan that provides people who have excessive levels of debt with an opportunity to repay their creditors by making use of reduced payment amounts. When entering an IVA, an individual and his or her assets can also be prevented from falling prey to additional legal actions as well as bankruptcy.

In several instances, an Individual Voluntary Arrangement will be considered when paying off the complete amount of outstanding debt is insurmountable. However, while this may seem like the perfect solution to getting debt repaid, there may sometimes be a few disadvantages of entering into an IVA, which will be discussed with you beforehand. You will be working with a qualified insolvency practitioner to set up an IVA.

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Potential benefits of entering into an IVA:

  1. Obtain assistance with being able to schedule more affordable monthly repayments
  2. Help avoid the possibility of being declared bankrupt
  3. Obtain assistance with putting a stop to harassing letters and/or phone calls
  4. Receive assistance with cancelling all interest and other charges
  5. Potentially being able to be completely debt-free within five years
iva Kent

It is possible to enter into an IVA throughout England, Northern Ireland and Wales. Scotland works with a different version of this system that is referred to as a Scottish Protected Deed.

IVA Kent Advice Procedure:

When applying for and entering into an IVA, your personal financial situation will be thoroughly assessed to determine whether you will be eligible or not. If you are deemed eligible to enter into an IVA, it is crucial that you adhere to the terms set out in it. Full details will always be discussed with you before entering into an IVA agreement. This enables you to make an informed choice regarding whether it will be a suitable option or not.

Potential disadvantages of entering into an IVA:

  • It is only suitable if your debt level exceeds £6,000
  • An IVA will be recorded in a public register, meaning that it will also reflect on your credit file. This could have an effect on any future credit applications
  • You will need to stick to a strict budget for the duration of the agreement – usually up o five years
  • To obtain approval, creditors that represent at least 75% of the amount of the money owed, along with a simple majority, will have to agree to the proposed arrangement
  • All liabilities and assets will have to be declared. In cases where assets of excessive value are owned, creditors may request that these be released for their benefit. In addition, any inheritances, windfalls or other bonuses will have to be declared to the supervisor of the arrangement
  • If you own property, you may be required to release some of its equity during the fourth year of the arrangement
  • Failing to keep up with agreed upon payments can result in your IVA being cancelled – which will result in you having to declare bankruptcy

Debts that can be covered by an IVA:

  • Building society loans
  • Bank loans
  • Overdrafts
  • Personal loans
  • Store credit cards
  • Charge cards
  • Catalogues
  • Regular credit cards
  • Tax debts
  • Council tax arrears
  • Gas and electricity debts

Debts that cannot be included in your IVA:

  1. Student loans
  2. Child support arrears
  3. Any maintenance arrears that have been court-ordered
  4. Magistrate’s court fines

Dealing with Joint Debts

You may be struggling with joint debts that are owed by you and someone else, such as your spouse or partner. An IVA is only able to cover one person at a time, so your partner will still be responsible for the full amount of the debt. As a result, it is not normally recommended that you include joint debts in your IVA.

Although you will not be able to take out a joint IVA, you and the other person responsible for the debt may be able to apply for individual IVAs that are connected. These are referred to as ‘Interlocking IVAs, and you will be able to obtain advice from your insolvency practitioner in this regard.

In cases where you have several joint debts and the other party in the equation is not keen on entering into an IVA, you may need to consider other options.

How IVA Repayments Work

If you decide to enter into an IVA, you will have to work out a practical repayment plan with your Kent insolvency practitioner. This repayment plan will then be put forward to your creditors and if they agree to it, you will have to repay a set amount each month, normally for a period of five years.

Your monthly repayments will be paid directly to your insolvency practitioner, who will in turn redistribute it to your creditors. A portion of your repayment will normally also be retained by your insolvency practitioner to cover his or her costs.

In the event that the payments you are making into your IVA are not sufficient to cover the full amount of your debts, the balance will be written off. However, you will need to confirm this with your insolvency practitioner.

What Happens when an IVA Comes to an End?

In most cases, an IVA will last for a period of up to five years.

When your IVA comes to an end:

  • Your insolvency practitioner should provide you with a completion certificate. However, if you do not receive this, you must ask for it
  • You will no longer have to pay any of the creditors for outstanding debts that have been included in your IVA
  • Any record of your IVA will then be removed from the insolvency register

Keep in mind as well that the cost of entering into an IVA can be high because a qualified insolvency practitioner must set them up. Although the costs may vary, you can expect to pay anywhere from £4,000 to £5,000 on average, and these costs will be paid in instalments as a part of your IVA payments.

Other Kent Services:

At www.Debt-Management-Site.com we do not give advice. On completion of our form, we will introduce you to one of our authorised debt solutions partners. We use the contact details you have given us on the form to make this introduction. A debt advisor will contact you by telephone. During that telephone call, the debt advisor will discuss your options in more detail. During this call, and other subsequent communications, you will be dealing with a debt solutions partner and not www.Debt-Management-Site.com. All solutions are subject to acceptance and eligibility. Further conditions will apply and calls are recorded for your protection. Initial advice is always free but, as commercial companies our partners do charge for on-going services. Debt Write off only applies on completion of the Insolvency Solution and details do appear on a public register. Full details will be discussed prior to entering into an agreement and alternative options may be offered, where considered to be in your best interest. Your ability to obtain credit will be affected for 6 years, even if the solution lasts for less and your assets and property could be at risk.

To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up by the Government to help people manage their money.

All debt solutions should be very carefully considered. www.Debt-Management-Site.com never charge for the advice we give you, but if you enter an Individual Voluntary Arrangement (IVA) or Debt Management Plan with one of our partner companies, then fees will apply and these are made clear by our advisors or in the documentation you receive. Retained payment may place you further into arrears. www.Debt-Management-Site.com partners all comply with the Financial Conduct Authority rules and principles of business and you have the right to a cooling off period of 14 days. It is likely that your ability to obtain credit will be affected for 6 years, even if the solution lasts for less.

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