An IVA is a legal agreement between you and your creditors, meaning
that lower debt levels could be accepted by your creditors. An IVA is
suitable for people who have unsecured debts and are struggling to
afford their repayments.
We offer IVAs through our partner company Churchwood Finance. An IVA is a legally binding agreement that allows you to repay your debts whilst freezing all interest and charges.
To find out more about managing your money and for free debt advice, visit the government’s Money Advice Service.
Reducedebts.co.uk do not charge customers a fee for the service we provide but we may receive a commission or fee from the lender, provider or broker where customers enter into an agreement following an introduction through this website.
The Insolvency Service is an independent government agency that has produced a guide on 'Dealing with your Creditors'.
If you have a question that isn't answered below then feel free to give us
a call on 0800 2300 025.
The amount paid is based on your income and expenditure and what you can realistically afford to repay each month.
Each individual is assessed on what is the right option for them. IVA is not the correct way to repay debts for everyone so this will depend on the severity of your debts and your individual circumstances such as the amount you owe, the number of creditors you have and the amount you can afford to repay.
It is important that you maintain your agreed payment schedule when entering in to an IVA. However, it is appreciated that there are some circumstances i.e. redundancy, sickness etc where payments are likely to be difficult. If there is such a change in your financial circumstances then an IVA offers the option of a suspension of payments for up to 6 months.
If you are a homeowner you may be asked to remortgage your property in the 5th year of your IVA to release equity to contribute to your outstanding debt. Any remortgage can only be to a maximum of 85% of the value of your property and you will only be asked to seek a remortgage if the available equity is more than £5,000.
For your IVA proposal to be successful at least 75% of the debt value in votes must be in your favour of your IVA application. Creditors can suggest alterations to your proposal and it is your choice on whether you accept or reject them. If your creditors don't vote in favour, you may still have the option of an informal agreement with your creditors, or you could explore Bankruptcy. Our partner Churchwood Finance will be happy to discuss these options with you.
Reducedebts.co.uk do not charge any fees for this service. There will be costs incurred with Churchwood Finance, however all costs you are required to pay are included in your payment schedule including Churchwood Finance fees. If you keep to the terms of your agreement then any outstanding unsecured debt will be written off when you complete the IVA.
During your IVA you will normally agree to not obtain any further credit. Once your IVA has been successfully completed your Insolvency Practitioner will give you a certificate of completion. You will be able to send copies of the certificate to the credit agencies and request them to update your file. Any defaults and CCJs remain on your credit file for 6 years, therefore you will have 1 year left to go. During the 6th year you can apply for credit but you may find this difficult.
Reducedebts.co.uk works with a number of partners for a range of debt solutions. We partner with Churchwood Finance who provide Debt Management Plans, IVAs and Trust Deeds.
If you are simply looking for guidance on which debt solution is right for you. Simply fill out the form below and we'll call you back to discuss your options.