IVA


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Expert IVA Advice

The debt specialists at Harrington Brooks are pleased to be able to give you expert IVA advice that can help those searching for information about the process behind the Individual Voluntary Arrangement.

Before committing to any debt solution, it's important to get as much information and advice as possible. This will help you to draw comparisons between the different options open to you. Everyone's financial circumstances are different so it's important to talk to an advisor that can help you find the right solution for you.

Your IVA proposal

We need to gather as much information about you as we can, to help us put together a detailed IVA proposal on your behalf. We'll need a complete breakdown of all of your debt, both secured and unsecured, a detailed plan of your income against expenditure, and a list of all the assets that you may own, whether they are being used to secure debts or not. Having made a clear assessment of your financial circumstances and compiled out findings in the proper documentation, we will then begin to draw up an in depth IVA proposal. Harrington Brooks' Licensed Insolvency Practitioner will act as your Nominee in drawing up the plan. This means that they will act on your behalf when presenting the offer to your creditors.

The Creditor meeting

Working closely with you on the proposal, Harrington Brooks will only make a submission to your creditors once you are totally happy. We'll then set a date for your Creditor Meeting, where your creditors will each vote on your IVA proposal; either to accept, decline or ask for amendments.

Should the Creditors Meeting find it necessary to make amendments to your IVA proposal, our Licensed Insolvency Practitioner will be sure to agree any changes with you. The last word will always be yours; you are in total control of whether you accept any of the amendments. Of course, Harrington Brooks will strive to make the strongest possible case for you. We have a lot of experience in negotiating with creditors to get our clients the very best deal.

You are not required to attend the meeting in person. In the vast majority of cases, an agreement can be reached by proxy and over the phone. Of course, we would advise you to make yourself available to respond to any modifications to the proposal immediately.

How your creditors vote on the IVA Proposal

All of your creditors are entitled to vote on your IVA Proposal. It takes a 75% vote in favour of the proposal for it to be accepted. However, this voting percentage is defined by value. The votes are proportionately representative of the amount of money that you owe to each creditor and not simply a matter of numbers of creditors. So, if you owe 75% of your total debt to one creditor, they have the casting vote on your IVA Proposal. Regardless of the number of creditors or the breakdown of the voting, once the proposal has been accepted, it is binding to all creditors. Even if a creditor voted against the proposal, they are still bound to the agreement and have no recourse to take alternative action.

Should a creditor be left out of the proposal and emerge once the IVA is underway, they can demand an amount equal to that which they would have received if they'd been in since the beginning.

Upon approval of your IVA, our Licensed Insolvency Practitioner becomes the Supervisor of the arrangement, meaning that they will manage the IVA and protect the interest of your creditors. It will be their job to ensure that you stick to the repayment schedule outlined by the IVA proposal. This benefits you as you will stop receiving correspondence from your creditors demanding payment. All payments are collected in a fund managed by the Insolvency Practitioner.

If you fail to meet the payment criteria of your IVA proposal, your creditors can press to have you declared bankrupt.

Should your circumstances change during the IVA term, you must ensure that you inform your Insolvency Practitioner immediately as they may be able to adjust your payment amount accordingly.

For free expert IVA advice why not complete our 15 second debt test or contact us directly at 0800 0481 764 and one of our advisors will contact you with more information on IVAs.


Individual Voluntary Arrangement (IVA):

  • Unsecured debts only
  • Initial debt advice is free but fees are payable if a debt solution is agreed.
  • An IVA should only be considered in extreme circumstances as failure to adhere could result in bankruptcy. Debt write off applies only where the IVA is accepted by at least 75% of your creditors (in terms of debt value) of those creditors who vote at the creditors' meeting convened to consider your IVA proposal and you have completed the, typically, 60 month term. Some homeowners may be required to release equity.
  • Fees and Costs: An estimate of the costs involved in the arrangement will be included within your proposal; however these fees are subject to change at the creditors meeting. Once the creditors have approved your IVA the basis of our fees will be set and an up to date schedule of fees will be issued to you. Chargeable fees are made up of Nominee's fees which relate to the assistance given to prepare your proposal and will be taken from the first payments made into your arrangement, and Supervisor's fees which relate to the ongoing monitoring, supervision and administration of your IVA and which will be charged on a monthly basis and deducted from the contributions you pay into the arrangement. No further fees are payable by you.
  • Credit Rating: A record of your IVA will be retained by credit reference agencies for a period of six years. Your credit rating will be impaired and it may be harder to obtain credit in the medium to long term.
  • Cooling Off Period/Right to Withdraw: You can withdraw your proposal for a voluntary arrangement at any point up and including the day of your creditor's meeting. Once the arrangement has been approved at the creditors' meeting and you have agreed to be bound by its terms, you have entered formal insolvency proceedings and no cooling off period applies.
  • Terms & Conditions apply.

The Insolvency Service have produced an 'In Debt? Dealing With Your Creditors' guide which summarises key features of each of the main ways of dealing with debt.

Financial Management Plans:

  • Unsecured debts only.
    Initial debt advice is free but fees are payable if a debt solution is agreed.
  • A key benefit of the Plan is the ability to only repay what you can afford each month. Clearly the consequence of this is that it will take longer to repay your debts, and creditors do not have to agree to freeze interest and charges. You will receive allowances to pay Secured and Priority debts.
  • Fees and Costs: An 'Initial Fee' is the set up cost of your Plan and is equal to two months disposable income, subject to a minimum of £295 and will be retained from your initial payment(s). Whilst you pay our initial fee, monies are not distributed to your creditors and this retained payment may place you in arrears.
    A 'Monthly Fee' payable for our services will be charged thereafter, equal to 17.625% of your monthly agreed disposable income, subject to a min of £35 and a max of £100.
  • Credit Rating: Entering into a Plan means contractual payments will be missed and your debt and repayment term could increase. Your credit rating will be impaired and it may be harder to obtain credit in the medium to long term as records will be retained by credit reference agencies for six years.
  • Cooling Off Period/Right to Withdraw: On receipt of your first payment we will issue to you a key features document and estimated fees schedule. If for any reason you wish to cancel we offer a seven-day cooling-off period from the date of said letter in which we offer a full refund of any fees which we have taken.
  • Terms & Conditions apply.

One Advice Group . Jackson House . Sibson Road . Sale . Manchester . M33 7RR . United Kingdom