IVA - FAQ’s
Can I protect my house?
An IVA prevents creditors from taking action against you and your property. However,
before the end of the IVA, it may be necessary for you to introduce a sum of money
into the arrangement in place of a proportion of your share of equity in the property.
This is normally done by remortgaging the property. If remortgaging is not possible,
you may be able to extend the arrangement for a further 12 months during which time,
you pay additional contributions in place of equity.
Is the IVA likely to be approved?
Yes, we would not recommend an IVA as a solution if we did not believe it had more
than a reasonable chance of being approved. It is rare for any of the IVAs that we
assist with to be rejected, as creditors are generally willing to negotiate. However, if
the IVA is not approved, you can put forward other solutions to their creditors including
debt management or bankruptcy and we will continue to help you.
How does this affect my credit rating?
An IVA will be shown on credit records for six years which is the same length of time as
any other adverse credit is recorded.
Will I still be able to obtain credit?
The IVA proposal normally states that you can only get credit if the supervisor allows
you to do so. This does not normally apply to individuals in business who can
demonstrate that they need credit to be able to continue trading.
Will my creditors stop contacting me?
Yes, once the IVA is approved, all further contact from creditors should cease. It may
take a while for creditors to amend their systems but within one to two months of the
start of an IVA, all communication from creditors will stop. Creditors are legally bound
by the terms of an IVA preventing them from pursuing you for the debt.
Who will be informed about the IVA?
Unlike bankruptcy, an IVA is not advertised in the press. Your employers will not know
unless you choose to tell them. The IVA is however, registered and therefore may be
picked up by credit reference agencies who will note the IVA on the your credit file.
To find the best solution for you Contact Simply Debt Solutions or Send Your Details to
The Debt Advisor today.
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