Applying for an IVA
With PennyPlan, applying for an IVA has never been simpler. Our debt advice team will hold your hand through every step of the process from beginning to end, so you can focus on the end goal of becoming debt-free.
Why apply for an IVA?
There are several benefits as to why you may be considering applying for an IVA.
You could be debt-free within 5 years
Individual voluntary arrangements typically last for a time period of 5 years. This gives you light at the end of the tunnel and a date to focus on during your repayment journey.
Your monthly payments could be reduced
An IVA could see your monthly payments reduced, giving you a little more breathing room in your budget each month.
Interest and charges are frozen
When you enter into an IVA, any interest and charges on your account are frozen. This means you will no longer accrue any additional debt during the duration of your IVA.
Creditors cannot contact you
Once your IVA is in place, your creditors are no longer able to contact you in regard to the debt you owe them. This can provide great peace of mind during what is often a stressful time.
Legal action is stopped
An IVA will cease further action being taken by your creditors. This means you will no longer have to worry about bailiffs or legal proceedings.
Your home is protected
The individual voluntary arrangement (IVA) gives you protection from your creditors in regard to your home. This means they cannot force you to sell your property in order to repay your debt.
How do I qualify for an IVA?
Although each person’s financial situation is different from the next, there are some general eligibility criteria you will need to meet in order for an IVA to be an option for you.
To be eligible for an IVA you must;
- Be a UK resident of England, Wales or Northern Ireland
- Have at least £5,000 of unsecured debt
- Owe money to at least 2 different companies
- Be unable to repay your debts in a reasonable amount of time
- Have a regular income
If you meet the above criteria, then you could be eligible for an IVA.
The next step would be to contact PennyPlan and speak with one of our debt advisors who can assess your eligibility and advise you on the best course of action.
Our expert advice will help you make an informed decision on the best solution for your circumstances.
Can I apply for an IVA myself?
With PennyPlan, our insolvency practitioners will propose an IVA on your behalf to ensure the arrangement meets the required criteria and is the most appropriate debt solution.
Can I apply for an IVA online?
Yes, you can apply for an IVA online with PennyPlan.
Our simple and easy-to-use online application form will take you through the necessary steps in applying for an IVA.
You will need to provide some basic personal or financial information, as well as details of your debts. Once we have this information, one of our debt advisors will call you to discuss your application further.
Applying for an IVA online with PennyPlan is quick, easy and free of charge.
How quickly can an IVA be set up?
The time it takes to set up an IVA can vary depending on the complexity of your financial situation. However, once you have decided to go ahead with an IVA, we will work quickly to get the process underway and approved promptly.
Typically, it can take around 4-6 weeks for an IVA to be approved. This includes the time it takes to gather all the necessary information and paperwork, as well as submit the IVA proposal to your creditors.
Once the IVA has been approved, you will begin making monthly payments toward your debt, and the arrangement will be in place for a period of 60 months.
How likely are you to get an IVA?
We cannot speak for everyone else, but at PennyPlan over 95% of our IVAs proposed at creditor meetings are approved.
The success of your IVA proposal will depend on numerous factors, including your total debt amount compared to the monthly repayments proposed, as well as your assets such as the equity in your home.
An IVA can be rejected for a few reasons, and our team will discuss in advance the likelihood of such a decision.
What information will I need when applying for an IVA?
When applying for an IVA with PennyPlan, you will need to provide some basic personal and financial information.
This will include details such as;
- Your income
- Regular expenses (bank statements usually evidence this)
- Asset details (Properties, vehicles, investments)
- Evidence of debts (Reference numbers)
The reason for requesting this information is it provides a clear picture of your circumstances, to show creditors why you are seeking financial support.
It also allows our insolvency practitioner to make an informed decision on whether the IVA is the best solution for your own circumstances.
Is it worth applying for an IVA?
An IVA can provide a number of benefits and is often the best solution for those struggling with unmanageable debt.
If you are unable to repay your debts in full and are struggling to make your monthly payments, an IVA could be the right option for you.
It is important to remember there are many pros and cons of entering an individual voluntary arrangement that needs to be considered.
Some of the disadvantages of an IVA such as the possible impact on your credit rating and restrictions on credit may be something that does not work within your short term plans.
That is why it is important to seek our free debt advice before deciding on whether or not to apply for an IVA.
At PennyPlan, our insolvency practitioners are experts in individual voluntary arrangements and can provide you with free and impartial advice on whether or not an IVA is the right debt solution for your circumstances.