Individual Voluntary Arrangement : Everything You Need to Know about Step Change IVA
Complicated debt scenarios can be equal to a nightmare. But, if you are aware of the right system to pay off your debt, then the burden can be controlled to some extent. And, such a brilliant repayment option for managing your debt is an Individual Voluntary arrangement or IVA. Through Step Change IVA, you will be able to pay off your debts easily.
An Step Change IVA offers you the scope to repay your debt within 5 to 6 years. And, you have to pay an affordable amount every month to write off your remaining debt legally. When you go for this scheme, you inform the debtor that you’re not in the condition to pay the debt in full. In addition, you have to show them some evidence that your income is comparatively lower than your monthly expenditure.
Moreover, you should have an overall debt of more than £10,000 to qualify for IVA. The creditors will ask you to pay an affordable amount every month to clear off the debt gradually. Well, there is more to the story of an Step Change IVA. There’s another payment method called lump-sum IVA. Obviously, there are certain terms and conditions to qualify for an IVA advice.
Let’s have a look at how IVA works, its advantages, downsides, along with how we can IVA help you to lead a debt-free life with IVA.
How does an Individual Voluntary Arrangement or IVA Debt Advice Work?
First, you can’t set the Individual Voluntary arrangement on your own. You have to contact an Insolvency Practitioner to make use of IVA Advice on your behalf. The hired Insolvency Practitioner will talk to your creditors and negotiate the entire aspect on your behalf. Because setting up an Stepchange IVA is a legal procedure.
Additionally, there are different IVAs available in the industry to cope with the financial statements. Your Stepchange IVA will be decided based on your income, expenditure, employment status, amount of unsecured debts, the total number of creditors, and your monthly budget. Your Insolvency Practitioner and creditors will decide how you have to pay every month to get rid of your IVA debt.
The Insolvency Practitioner will draft the repayment plan for you. The proposed amount of repayment will be based on your affordability. Now, the Insolvency Practitioner will dispatch the proposal to your creditors. There will be a meeting deciding your financial fate where the creditors might or might not approve the proposal. The creditors will verify the justifications mentioned in the IVA Advice proposal. You do not need to attend this meeting.
If 75% or more of creditors agree to your IVA proposal, you have to start paying the mentioned monthly payment towards the Stepchenge IVA scheme. Then, you have to carry on the same payment scheme for 5 to 6 years. And, you will be announced debt-free if you carry out the process successfully.
We have been consistently helping our customers with reliable IVA debt advice. Our expert financial advisors can definitely help you with the required piece of knowledge. Additionally, we can help you as an Insolvency Practitioner and form the right proposal for your IVA Stepchange. Our in-house professionals will look closely at your instances to benefit you the most. So, join our IVA Stepchange services to take a step forward to write off your debts legally.
What are Different Types of IVA?
IVAs can differ in a wide range of financial schemes. It all depends on the statement and status of the debtors. Here are the details of every IVA Stepchange scheme available.
Interlocking / Joint IVA
It applies to partners or couples where both the husband and wife owe money to creditors. Well, they can owe money jointly or separately. If one of the partners is eligible for the IVA Stepchange, then another partner can hold the same IVA. Thus, it is called Joint IVA.
Assisted Payment IVA
Here, the debts are assigned to a single name. It’s not necessary that the husband or wife or the partner has to stay obliged to pay off the debt. But, assisted payment IVA offers the chance to contribute to the other partner’s IVA. step change iva can state whether you are eligible for assisted payment IVA or not. By the way, it’s possible to include joint IVA into an assisted payment IVA.
IVA is not only a case of partial payment every month. You can end your debt suffering by paying a lump-sum amount of money. If you go for lump-sum IVA, then it will take a few months to legally write off your debt. You can take help from your family members, friends, or equity to pay off the lump-sum IVA.
If the equity is much lower than what you owe, then you can request the creditors to write off the remaining debt. Make sure that your creditors accept the equity release as the full and final payment on your behalf. Lump-sum IVA can be completed with payment instead of at least 60 monthly payments. However, the lump-sum IVA payment should be equal to at least 25% of your overall debt. And, you might have to pay some additional costs when you are going for a lump-sum IVA Debt Advice.
This IVA applies to sole traders and self-employed individuals. And, you can go for this IVA Help when it includes both your business and personal debts. Our experts will suggest the best advice while setting up a business IVA so that it doesn’t impact your business.
Perks of IVA
Individual Voluntary Arrangements are meant to ease up the debt repayment process. It comes with additional benefits. Take a look at them to know how they can Best IVA Company in UK help you:
- IVA Debt Help offers you one monthly and affordable payment according to your expenses and income.
- When you are under an IVA, no creditor can bother you.
- Your creditors can’t contact you directly.
- You can expect the IVA to complete within 5 years or less as per your payment history.
- After an IVA applies to you, all the interests are frozen instantly.
- IVA is appropriate for individuals, couples, homeowners, tenants, and business owners.
- Your 75% creditors have to nod to the IVA proposal to write off your debts legally.
Disadvantages of IVA
Well, IVA is not all about sugar and brownies. There are some terms and conditions. You should be aware of them before you apply for IVA.
- If you own a home with equity, then you have to mention the share of this equity in the IVA. There might be hassles when it comes to remortgage. If you fail to get a remortgage, then the IVA can extend for a year.
- The IVA is likely to fail if your financial circumstances change and your Insolvency Practitioner doesn’t inform the creditors. And, you have to make the full payment of the debt.
- Once your IVA fails, your creditors can force you to go bankrupt. Your creditors will let you know before arranging the process.
- All the step change iva details will be presented on the public register.
- The IVA will negatively impact your credit rating for 6 years.
How to Apply for Step Change IVA?
One can go for an Individual Voluntary Arrangement if he or she meets the requirements for IVA. If you are dealing with huge unsecured debts, then you can get in touch with Step change IVA. Our experts will listen to you and suggest to you what you can do to improve your situation and write off the debt.
Additionally, we will check whether you’re eligible for an Individual Voluntary Arrangement. Our experts will verify your income, budget, financial condition, and how much you can afford to pay for the monthly IVA scheme. Then, we will set a proposal for your creditors.
Our experts have helped countless individuals with IVA. There’s an amazing success story when it comes to setting up an IVA and making it convincing to creditors. Connect to us if you’re looking for an Insolvency Practitioner to apply for the IVA.
Frequently Asked Questions
Here we have listed the most commonly asked questions about Individual Voluntary Arrangements or Step Change IVA. Check them out for a quick reference:
An IVA is a legal contract between you and your creditors to pay off your debts or write them off. If you are struggling to manage your finances and there’s a burden of debt on you, then IVA can be a profitable scheme for you. However, it relies on your income, budget, expenses, and the amount of debt to decide whether this is the best policy. Contact our experts so that they can guide you with our advanced tools and advice sessions.
With IVA, you have to pay an affordable amount of money every month. The amount will be decided after verifying your financial status, budget, income, and essential expenses. And, you can pay what you really can afford and not more than that. Your creditors can’t make you pay more once the IVA is signed unless there’s a change in your circumstances.
If you choose us as the Insolvency Practitioner, then we will decide on a minimal charge. That will be deducted, including the affordable monthly payment to the IVA. Don’t worry as we go for a reasonable fee according to your debts, income, expenses, and other additional factors. And, we will provide you with the monthly bill of the IVA fee.
To be honest, IVA is not for everyone. Your job might have a negative impact if you apply for IVA. In case you are a director of an organisation, accountant, financier, pub licensee, or in property-related roles, then IVA can affect your employment. Before you apply for an IVA, make sure that you discuss this confidentially with your HR team.
Your creditors will gradually stop contacting you when you start paying the monthly instalments. They might knock on your email address. However, they don’t have the right to threaten you legally. If you are having any issues with your creditor, contact Step To Changes.
Go for Our Experienced IVA Services
Undoubtedly, IVA can help you to write off your debt in an almost painless way. If you don’t go with a worthy Insolvency Practitioner, then there can be other consequences. So, select our IVA services and the Step To Changes team will assist you in every step to succeed with an IVA.