IVA Application Process - Help With IVA Applications & Finding The Best Company

Making an IVA application is actually a very straightforward process, provided you have done your research and know that you are applying to a reputable IVA specialist.  The important thing is to have an understanding of what an IVA is and whether it is actually going to be appropriate for your situation.  You then need to consider how you go about finding a good specialist company to provide it for you.

An IVA is an individual voluntary arrangement, and was originally introduced as an alternative to bankruptcy.  There are a few fundamental points about IVAs that you need to understand before taking the time to go through the IVA application process.  First and foremost is that they are only available in the UK, so people based in any other country cannot get one.  For US citizens the nearest equivalent will be debt settlement, which achieves similar end results.  IVAs are not available in Scotland because of different laws, but there is a direct equivalent called a Trust Deed, which some IVA specialists also provide.

You must have at least £15,000 worth of unsecured debt for your IVA application to be approved.  This debt has to be to two or more creditors and must be for what are known as unsecured debts.  This means you cannot include secured debts such as a mortgage on your house, and neither can you include things like tax arrears.

When you set up an individual voluntary agreement you are agreeing to a legal contract, part of which is to make a fixed monthly payment towards your debts.  For this reason, you must have a source of income that will leave you enough spare to make this payment.  The IVA specialist will confirm this when they go through your finances with you as part of the IVA application process.

IVAs are intended to deal with very serious debt situations in a way that enables you to avoid the more drastic step of declaring bankruptcy.  However, you can still do an IVA application even if you are already subject to a bankruptcy order.  If the application is successful, the bankruptcy will be annulled.

If you are accepted for an individual voluntary arrangement, the provider will set up negotiations with your creditors to try to get their agreement to it.  Because it is a legally binding process, you just need to have 75% of the creditors in agreement for the remainder to be bound by the terms of the IVA too.

You will then stop paying your creditors and make a fixed payment through the provider instead, who will then share it among your creditors.  After a fixed period, usually not more than five years, your remaining debts are written off and you are debt free.

If you feel that an IVA application could be the right course of action for you, the most important thing to do is ensure you only talk to reputable and dependable companies about setting it up.  All companies are not the same, and some will try to steer you towards whatever solution will make them money, rather than what will get rid of your debt.

The safest way to go about finding the best IVA company is to follow recommendations for only the most well established and reputable companies, then apply to a few of them.  You are under no obligation to accept any offer they make to you, so this will allow you to compare offers and find a company you feel happy to work with.  With all the best companies you should be able to start your IVA application by a simple and quick online form.