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If you are struggling to cope with seemingly insurmountable debts there could be a way out that does not involve the trauma of bankruptcy or losing your property.
With an IVA (Individual Voluntary Arrangement) you make just one affordable payment a month and in an agreed period of time, typically five years, whatever debts you can’t afford to repay are written off.
IVA offers a total debt solution for anyone who owes £10,000 or more in unsecured debts and has a regular household income.
Once agreed it ensures:
You won’t need to deal with your creditors again.
Interest will be frozen by law.
Your monthly repayments are likely to be lower.
Creditors will be prohibited by law from chasing you for payments.
At ClearStart we specialise in helping people find solutions to their debt problems. We are one of the country’s leading advisers on debt and every month we put hundreds of people on the path towards taking control of their debts.
If an IVA is the right solution for you we will help you through the whole process with confidential and objective IVA advice.
An IVA can be set up in as little as 30 days but may in some cases take up to eight weeks. ClearStart will be there with you every step of the way – helping you prepare a monthly budget, preparing the proposal that goes before creditors and then holding a creditors’ meeting to present your case.
During the course of the agreement our customer care team will be on hand to offer help and advice whenever you need it and once a year we will review the progress of your IVA to ensure that everything is running smoothly.
We do not charge any upfront fees. The initial consultation is without obligation and if we go ahead with the IVA our fees are covered by your monthly payment. If for some reason the IVA is not accepted you will not have to pay any fees.
For many people an IVA offers a realistic, achievable way to take control of debts. It’s main benefits are:
Entering into an IVA is a serious undertaking and it is important to be aware of certain aspects to ensure you get the successful conclusion you are looking for.
An IVA is an effective solution for many people but there are certain criteria that must be met in order to be eligible. You must be resident in the UK, (but not in Scotland where there is a different solution); be unable to manage your debt repayments; owe £10,000 or more in unsecured debts (including personal loans, credit cards, store cards and overdrafts); and have a regular household income. You should also be able to pay a minimum of £100 to consider an IVA.
If you think an IVA may be right for you contact the ClearStart support team today for a chat in complete confidence. Or complete our six question debt test to find which debt management plan would suit you best. It will be your first step to a brand new start.
Our fees for setting up and administering an IVA are covered by the monthly contribution you make as part of the agreement. The fees vary depending on the amount you can reasonably afford to pay, and are agreed with your creditors beforehand. At ClearStart you will never be asked to pay money upfront.
The fees cover everything from setting up the IVA to ensuring it runs smoothly. After helping you draw up a personal monthly budget we will prepare your proposal and hold a creditors’ meeting to present your case. There are no fees to pay if the IVA is turned down.
Once the IVA is in place our customer care team will be there to help with any queries or issues that arise, and to review the situation once a year to ensure everything is going as planned. If there is a change in your circumstances we can help with any adjustments that need to be made to your IVA. We also administer the distribution of payments to your creditors and work with them to ensure there are no problems.
The fees we charge are in two parts, which will be clearly outlined and explained before you commit to an IVA. The first are the nominee’s fees for setting up the arrangement – normally a fixed fee based on the first five months of contributions. The second are the supervisor’s fees for managing the IVA which are spread over the term of the agreement, and are typically on a percentage basis.
Our fees represent a small portion of the contribution you make towards your debts. A client owing a total of £44,000, for example, might typically enter into an IVA in which the debt is reduced to 37 per cent of the total, a sum of £16,140. From this ClearStart would be paid £3,565 over five years, taken from the client’s monthly contribution of £269.
Who can apply for an IVA?
Anyone in England, Wales or Northern Ireland with debts over £10,000 and a stable income could potentially benefit from an IVA. For residents of Scotland, ClearStart can recommend a practitioner who can set up the Scottish equivalent (a Standard Trust Deed).
Will my debt be written off?
As part of an IVA proposal, some of your debt will be written off. You will need to be wary of unrealistic promises: some organisations will tell you they can write off 90% of your debts using an IVA. In fact, a write-off of 50-60% is an average. So if all of your debts add up to a typical £60,000, for example, you can expect to have £25-30,000 written off in total through an IVA.
How long does an IVA last?
An IVA typically lasts for 5 years, however as everyone’s circumstances are different, in certain situations an IVA could run for 6 years or longer; or could be completed sooner should, for example, a final lump sum be paid.
How much does an IVA cost?
IVA repayments vary on a case-by-case basis, depending on what assets a debtor has and how much money is available after living expenses have been deducted from monthly income. There tends to be a minimum amount that creditors will accept and an IVA is usually rejected if it offers to pay the creditors less than 20-25% of what they were originally owed.
My wife and I have been in our IVA for 14 months now, and we have noticed a difference in our finances, things are not as tight anymore. I am so grateful for the support ClearStart provided in regard to dealing with our creditors and they really do offer a 1st class service.
I feel I can see some light at the end of the tunnel. Things are beginning to pick up and although there is still some way to go, I think I can manage to complete the IVA; thus avoiding bankruptcy and, further humiliation.
After ClearStart took all my details and recommended an IVA as the best way to manage my debts and keep my family home they kept me informed by post and by phone and within a month or two I was in an IVA. The repayments became manageable with only a small payment to pay each month on top of my mortgage.