IVA Questions & answers

We know you’ll have questions about what we do and how we help. Below are some of the frequently asked question we get

What is an IVA?

An IVA is an individual voluntary arrangement. It is a legally binding agreement between you and your creditors in order to freeze interest charges protect you from further action, and allow you time to make repayments that you can afford.

An IVA is administered by an Insolvency Practitioner.

Will entering into an IVA effect my credit score?

Entering into an IVA will affect your credit score.

A note will be made on your credit file and in the insolvency register and this will likely prevent from getting further into debt during the term of your IVA.

Will an IVA effect my job?

An IVA is a private agreement between you and your creditors. Unless you’re employers is one of your creditors it is unlikely that they will know of your IVA, unless you choose to tell him about it.

With that said the insolvency register is a publicly searchable database so information about your IVA could be found there.

It is unlikely to affect your job unless you are a solicitor or an accountant.

Will an IVA effect my house/home?

During your IVA your house will be legally protected from your unsecured creditors.

Your mortgage is not included in the IVA and must continue to be paid.

Around month 54 of your IVA you will be asked to value your property to calculate the equity. This equity calculation is 85% of the valuation minus the outstanding mortgage and any secured loans.

Equity of less than £5000 is ignored. Above that you must try to release some equity towards your IVA by remortgaging or using a secured loan. If that is not possible you may have to extend your IVA payments for an additional 12 months.

You cannot be asked to increase secured debt or mortgage payments by more than 50% of your current IVA payment.

If the house is in joint names your partners shares of the property is not included since they are not responsible for your debts.

How long does an IVA last for?

Typically 5 years.

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Youriva.co.uk is a trading style of Regional Legal Limited regulated by the FCA in respect of regulated Claims Management and Debt Advisory activities. FCA number: 830819

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