At ClearDebt we’ve helped tens of thousands of customers reduce their debts by using an Individual Voluntary Arrangement (IVA)
If you’re struggling to pay your debts for the first time or you have been treading water for a while, it can be an extremely worrying experience. Knowing where to turn and who to talk to can sometimes be confusing.
That’s where we come in with over 13 years of experience in resolving the problems thrown up by debt. We have the knowledge and expertise to help you gain control of your finances and free you from the pressures of debt.
In 2016 alone we helped over 6,000 people write off over £15 million of debt, giving everyday people peace of mind and putting a stop to sleepless nights. Whatever your debt issue, our advisors are here to help point you in the right direction.
We can help you take back control of your finances and enable you to finally breathe easy again. Let us help you take the stress and burden of debt away.
- Your credit rating will be adversely affected throughout your IVA and usually, for an additional year after completion.
- Should the IVA fail, creditors may back date interest on your debts or may request your Supervisor petitions for your bankruptcy.
- Not all debts can be included in an IVA, such as court-imposed penalties/fines.
- If you come into any extra money whilst in your IVA, this will be taken into account and you could be expected to pay any windfall into your IVA as well.
- You may have to downgrade or sell any really high value assets (such as exchanging a luxury car for a more economical one).
- An IVA is a way to avoid bankruptcy proceedings and property repossession.
- An IVA allows you to make one affordable fixed monthly payment.
- Legal action by your creditors is stopped as long as you make your IVA monthly contribution.
- The interest on your debts is frozen as at the date of the creditors meeting convened to approve the IVA.
- Debts included in your IVA could be cleared in 5 years.
- Homeowners entering into an IVA should be aware that they will be expected to release any available equity for the benefit of their creditors. Due to credit scoring it may be that the terms of such an arrangement are less favourable. It could also mean that releasing equity is restricted completely and, in protocol compliant cases, the IVA can be extended by a further 12 months.
- At the start of an IVA an assessment of your income and expenditure items are taken and thereafter reviewed annually. Creditors will require evidence should certain items be considered excessive and if suitable proof cannot be supplied, you will need to reduce your spending in those areas.
- Acceptance of the IVA lies with the creditors. For an IVA to be accepted, 75% of the voting creditors by debt value must approve, therefore any single creditor with 25% or more of the overall debt level must not reject.
- There may be other suitable options for dealing with your debts and where this is the case we will make you aware of them. If an IVA is not an appropriate solution for you we will signpost you to the Money Advice Service for advice.
- An annual financial review of your income and expenditure will take place on each anniversary of the approval of your IVA until completion. This will determine whether you can afford to increase your monthly contributions for the benefit of your creditors. Increases in your living expenses and changes in circumstances are taken into account during this review. There are restrictions on the expenditure of a person who enters into an IVA.
- There will be no upfront fees charged. The Nominee’s fees and Supervisor’s fees are paid from your agreed monthly contribution. If you became able to repay your debts in full the amount you would pay would include these fees.
- Entering into an IVA will be entered on a public register.
- Trust Deeds affect your credit rating for six years, starting from the date the arrangement is agreed.
- You will not be able to take out further credit during your Trust Deed.
- Homeowners may be required to release equity for the benefit of your creditors
- If you fail to keep up your payments you may be at risk of Sequestration proceedings against you
- Your details will be held publicly on the Individual Insolvency Register
- A notice (advert) will be placed in the Edinburgh Gazette
- If you’re a homeowner you may have to sell or re-mortgage, although you may be able to agree to make additional payments into your Trusts Deed in lieu of the equity
- You may be expected to sell high value items but certain items will be allowed e.g. a reasonably priced car if required for work and family purposes
- You will be debt free, typically, in 4 years (48 months)
- Debts included in the Protected Trust Deed will be written off once completed
- You can keep your home and car
- All interest and charges will be frozen
- Creditors will no longer be able to chase you for payment and cannot take further legal action against you
The fees are case dependent and also depend on how much you can pay your creditors each month. Your Insolvency Practitioner will charge a fee to administer and manage your case. This fee will be deducted from your monthly contribution before it is disbursed, meaning no additional payments will be required.
- You must live in Scotland
- You have £5,000 or more unsecured debts
- You are able to contribute a reasonable amount towards your debts every month