Advice on those starting the IVA process

This section will cover some key points in starting an IVA such as:-

1. How do I start an IVA
2. I am thinking about starting an IVA but I am a low paid street cleaner. Will an IVA still work?
3. I am OK with some of my debts but struggling with one loan. Can I leave out the ones I am up to date with?
4. Important information regarding IVAs

How do I start an IVA?

You can consider an IVA to deal with your debt problem if you satisfy the following guideline:-

• You must have UK debt in £ (pounds sterling).
• You must be a resident of England, Wales or Northern Ireland. Please note that if you live in Scotland we can still help you but you should consider a Protected Trust Deed.
• You must be insolvent. This means you are having difficulties paying your debts or your debts are more than the equity in your home.
• You must have debts over £15000. Please note for smaller debts you should consider a Debt Management Plan
• You must be able to afford at least £200 per month towards to your debts. This is because the creditors need to get at least 25% of their money back before they will consider starting an IVA for you.
• You should have a regular income and show that you can afford all your basic living expenses such food, clothing and utility bills.
• You must show good attitude towards paying your debts because the IVA practitioner must feel comfortable acting for you.

I am thinking about starting an IVA but I am a low paid street cleaner. Will an IVA still work?

It doesn’t matter if your are street cleaner, toilet cleaner of high paid city investment banker. You can propose an as long as you have a regular income.

Please note that the success of starting an IVA is all judged on whether you have enough disposable income to satisfy the creditors that you can pay back an agreed amount.

I am OK with some of my debts but struggling with one loan. Can I leave out the ones I am up to date with?

NO, this is illegal. There is word under UK law called a “preference”. A preference is anything which puts one of the creditors in a better position than he would otherwise have been in had that thing not been done. For example, repaying one creditor ahead of others.

Imagine if someone owed you and four of your friends £1000 pounds each but paid he paid his other friends off instead of you. You would be annoyed - that is a preference.

You should include all you unsecured debts in an IVA such loans, overdrafts, doorstep loans, credit cards, visa cards, student loans, tax debts, store cards and catalogues.

Important Information

Please note that if you are self employed you can include your business debts too such as trade suppliers, HM Revenue and Customs income tax and VAT .

Please note that process of starting an IVA is a relatively simple process carried our by a Licensed Insolvency Practitioner. There are lots of Licensed Insolvency Practitioners in the UK. Many are very expensive and will not consider even talking to you until you have paid them a fee.

If you come via The UK Insolvency Helpline you will not be charged any upfront fees - instead they are included in your monthly IVA payments. This approach is unique and it is the main reason why we are one of the leading advice services in the UK dealing with IVAs.

Please beware of some debt Management firms and insolvency practitioners offering free home consultations. You should exercise extreme caution in letting some of these people into your property.

They will quite literally stay at your house for hours and hours and will not leave until they either have all your paperwork or even worse have got a cheque from you. We have even heard horror stories of salesman making you get cash from a ATM so they can get you as a client.

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