IVA - Individual Voluntary Arrangements

An IVA is a legal process for those with unaffordable unsecured debts. It's a formal agreement between your client and their creditors whereby the client repays what they can afford, usually over 60 months. Upon successful completion of the IVA, the remaining debt is written-off.

IVA commissions

You'll receive 40% of the nominee's fee as payment for information for the statement of affairs. Typical nominee's fees range from £500 to £2500.

IVA Criteria

Your client will need to owe more than £11,000 to creditors (minimum three lines of credit from two or more creditors) in order to potentially qualify for a IVA, although fulfilling these criteria does not necessarily guarantee acceptance.

Why Refer IVA cases to ClearDebt?

Reputation and quality of service.
ClearDebt has an excellent reputation within the industry not only for quality of advice, but for customer service, high standards and ethics. See ClearDebt's profile on IVA review website IVA.com for independent verification. Our Group CEO, David Mond, is the current chairman of the Debt Resolution Forum (DRF), which serves raise industy standards.

Lower thresholds mean more accepted cases.
ClearDebt charge amongst the lowest fees to creditors in the industry, and therefore have lower minimum debt and lower monthly payments acceptance levels. This means, (subject to an IVA being the most appropriate advice) we can place more of your clients in an IVA than most other providers.

Benefits For Your Client

An affordable repayment plan.
Your client only repays what is affordable after taking into account personal circumstances. This enables them to live within a realistic budget whilst keeping up payments.
An IVA stops harassment.
No more angry phone calls or threatening letters. Your client's personal debt advisor will deal with all creditor communication. A debt included within an IVA can't legally be pursued once the arrangement is in place.
Debt freedom in 5 years, with some debt forgiveness.
This is dependant upon approval of 75% (by value of the debt) of creditors, and provided payments are maintained. At the successful completion of an IVA, up to 70% of the original debt can be written off.
An IVA freezes interests on debts.
Your client will stop paying interest on their debts at the point of the IVA proposal being approved.
An IVA avoids bankruptcy.
Creditors can't bankrupt your client so long as agreed IVA payments are maintained. Bankruptcy means loss of control of all assets, including the clients property.

Points to consider before entering an IVA

Effect on credit rating.
Obtaining credit under an IVA may be more expensive than before.
An IVA does not guarantee avoidance of bankruptcy.
Should your client be unable to complete their IVA, they may be made bankrupt.
IVA register.
All IVAs are noted on a public register and will appear on your client's credit file.
Homeowners may be required to re-mortgage.
If your client owns (or jointly owns) property in which they have significant equity, normally, they will be expected to re-mortgage to raise money to pay into the IVA in typically, year 5. This is subject to affordability and not exceeding 50% of monthly IVA payments, plus other criteria.