Sage-Tips

How does an IVA affect your life?

Having an IVA may affect any future income or assets that you receive. For example, if you decide to move house while you have an IVA, any money you make from the sale might have to be paid into the IVA. If your income increases while you have an IVA, you have to declare it to your insolvency practitioner.

What is an IVA and how does it work?

An Individual Voluntary Arrangement ( IVA ) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors. An IVA can give you more control of your assets than bankruptcy.

Is IVA good or bad?

An individual voluntary arrangement (IVA) can negatively affect your personal and professional life, and make a dent in your credit score. But, if managed well, an IVA can also help you get your finances back on track.

What is the downside to an IVA?

Cons of an IVA As an IVA usually lasts for five years, it means that is it likely to remain on your credit file for a further year after successfully completing the IVA. As a result, you will probably find it hard to obtain future loans or other financial products.

Can I go on holiday while on IVA?

Taking a holiday is not prohibited during an IVA. In fact, you can travel across the UK or elsewhere. But, obtaining the funds to pay for it could be tough. This means you’ll have to manage within the limits of your IVA budget.

Will I lose my car with an IVA?

If you enter into an Individual Voluntary Arrangement (IVA), you will generally be allowed to retain your car provided that it is necessary for work or family transport reasons and the car’s value is not excessive.

Is an IVA a CCJ?

Yes, a County Court Judgement debt can be included in an IVA. Insolvency law states that when someone applies for an IVA, all their unsecured creditors must be treated equally, with no advantage being afforded to one over another.

Does an IVA stop bailiffs?

Bailiffs were not allowed to visit the client’s property, as an IVA stops the creditors from continuing legal action. The creditor who had instructed bailiffs received the payment from the IVA in full and final settlement of their debt.

Can I go on holiday with an IVA?

Can I get an IVA without my husband knowing?

But apart from letting the organisations that you owe money to know, your provider won’t tell anyone else, and they certainly won’t contact your family or friends about your plans to start an IVA. So if you’re wondering whether you have to tell your partner about your IVA, then the answer is no.

Can IVA take my savings?

Does an IVA take all my money? No. An IVA will not take all your money as it will allow you to keep any neccessary income needed for rent, bills and so on. All disposable income will likely be put towards your IVA.