Debt Management Plans and Individual Voluntary Arrangements (IVAs)

A Debt Management Plan is tailored to help an individual make reduced repayments to their creditors over a number of years. Repayments are based on what is affordable to the client after income and expenditure have been calculated.

• Ideally suited for debts between £5000 - £15000
• Relatively easy to set up
• Fees & Interest may continue from creditors
• Allows reduced payments to be made over a number of years

Individual Voluntary Arrangement (IVA)

• Ideally suited for debts over £15000
• Write off a percentage of the overall debts
• Debt free within 3 - 60 months
• Safeguards House & Car and avoid the consequences of bankrupt

IVA - Frequently asked Questions

Which debts can be included in an IVA?

Normally any unsecured debts can be included within an IVA. This rules out mortgage and other debt rescue repayments and any items on hire purchase will be repossessed if payments can't be made.

Can an IVA be settled early?

Many IVAs end early with the introduction of a lump sum of money. We can arrange a variation meeting to offer a sum of money in full and final settlement of your obligations under the IVA.

Will you lose your home if you enter into an IVA?

No the property is protected in an IVA although you may have to release some of the equity towards the end of the IVA to pay the creditors, this is agreed in the initial proposal and can be deferred for up to 4 years.

Can you get a re mortgage if you are in an IVA?

Yes as long as the IVA is up to date then there are many lenders that will offer a re-mortgage, although you may pay a slightly higher interest rate

Can you pay a lump sum as well as monthly contributions?

Yes if for example you cannot afford a larger monthly payment initially but own your own home then we can negotiate to pay a lower monthly contribution with a lump sum paid towards the end of your IVA, this can be arranged by way of a remortgage.

Posted 15/05/2009 13:57:08