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Frequently Asked
Questions |
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1. |
Question |
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How does an IVA work? |
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Answer |
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An Individual Voluntary
Arrangement (IVA) could
be your best solution if
you have a substantial
amount of unsecured
debt, usually over £10,000.
A licensed Insolvency
Practitioner can
negotiate a legally
binding agreement
between you and your
creditors.
You agree to make an
agreed monthly payment
for a fixed period of
time, usually 5 years,
and best of all at the
end of that period the
remaining balance is
written off, as much as
75% of your debts!
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2. |
Question |
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What are the effects of
an IVA? |
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Answer |
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As long as you continue
to pay the agreed amount
each month you’ll be
protected from any
further action being
taken against you by
your creditors. Interest
and charges will
normally be frozen and
best of all you can
write off up to 75% of
what you owe. Your
credit rating will not
be as seriously affected
as it would in
bankruptcy. |
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3. |
Question |
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Do all my creditors have
to agree to an IVA? |
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Answer |
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To approve your IVA, at
least 75 percent (by
debt value) of the
creditors who vote at a
meeting, must accept
your proposals. Even if
they don’t vote, or they
vote against your
proposals, each of your
creditors will be bound
by the agreement as long
as it has been accepted
by this majority. |
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4. |
Question |
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How much do I have to
pay? |
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Answer |
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We will advise you fully
about the amount that
you should propose to
pay into your IVA. In
principle, however, the
payment will be based on
the amount you have left
over after we’ve made an
allowance for all the
day to day living
expenses of you and your
family. Your creditors
will usually require
that these payments are
maintained for five
years. |
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5. |
Question |
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What about my house? |
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Answer |
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Unlike bankruptcy
assurances can be agreed
to protect the family
home. |
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6. |
Question |
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What if I am unable to
make my payments? |
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Answer |
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We will be in regular
contact with you to make
sure you’re able to meet
your monthly payments.
If you find that you are
unable to meet your
payments, we will try to
renegotiate the terms of
the agreement with your
creditors. |
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7. |
Question |
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What happens at the end
of the agreement? |
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Answer |
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As long as the terms of
the proposals have been
fully carried out, your
creditors will have no
further claim against
you and the balance of
any unpaid debts is
written off.
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8. |
Question |
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Why would my creditors
accept an IVA? |
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Answer |
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In accepting an IVA,
your creditors will
expect to get a better
return than they would
from any other
reasonable alternative,
and your payment
proposals should
demonstrate this to be
the case. Your creditors
will also benefit from
the fact that your IVA
will be monitored
independently.
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9. |
Question |
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How much does an IVA
cost? |
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Answer |
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All the costs associated
with your IVA are taken
from the payments you
make in to it. You don’t
pay anything extra.
At Debt Princess, we are
committed to being
totally clear, open and
fair to both you and
your creditors about our
fees and any other costs
that may be incurred. We
do not pay or receive
any undisclosed fees or
commission.
We will fully inform you
of our proposed fees
before you agree to an
IVA. |
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10. |
Question |
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Does Debt Princess
belong to a professional
body? |
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Answer |
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Our insolvency
practitioner is
authorised to act by the
Insolvency Service
(part of the Department
of Trade and Industry),
and is a member of the
Association of Business
Recovery Professionals
(known as R3). All
authorising and
professional bodies
provide technical,
professional and ethical
guidelines which have to
be followed carefully.
More information is
available from the
Insolvency Service
website at
www.insolvency.gov.uk. |
