What is an IVA?

 

Individual Voluntary Arrangement

 

How does it work?

 

An IVA is a legally binding agreement between your customer and their creditors. It will allow them to repay the debt at a fixed amount, over a fixed term (typically 60 months) and possibly write off a portion of the debt. IVA’s are guaranteed to Freeze the interest and charges, and at the end of the term your customer will be genuinely debt free. 

In year 4 homeowners are obliged to seek a Re-mortgage; rest assured we will ensure your customer is ring-fenced and referred back to you for this.

 

We have experienced IVA specialists that can take your customer through the necessary assessment, and establish if an IVA is an available debt solution.

 

How will it help my customer? 

 

IVA’s are a real solution for customers that want to resolve all their unsecured debt.

 

Case study: Male, living on his own

 

Mr B was made redundant after 20 years, and found alternative employment but with a lower salary. Once the redundancy payment had been used, he relied on credit cards and personal loans for his day to day living – and soon he was unable to keep up with the payments. In fear of losing his home, and keen to eliminate the debts that had accrued

UK Global Associates Limited was able to set up an IVA which helped Mr B keep his home and fix his monthly payment at a manageable amount. 

 

 

                                                                                              IVA Solution

                               

                             Before                                                                                        After

                   Debt £40,982.55                                                                                       Debt £10,245.64

                                                                                                                   Equity £9,788.00

                                                                                                                                                         Total £20,033.64

      Monthly payment £843.20                                                               IVA Payment £159.91

                                                                               

                                                                          Reduction in outgoings £329.32

                                                     

                                                                     Debt written off £20,948.91 (51.11%)

 

How do YOU qualify?

 

You as a customer needs to owe a minimum of £15,000 + unsecured debt to at least 2- 3 separate creditors. The minimum surplus income is £100 per month. Benefits are fine, Equity no issue, No minimum dividend to creditors.

 

What are the fees?

 

We don’t charge the customer, as we are paid a fee from the IVA practitioner.

 

Advantages

• At the end of the term your customer will be debt free

• IVA’s are discreet as they not published in the press

• The interest and charges are guaranteed to be frozen

​

Disadvantages

• Your customer is unable to obtain further credit without permission

• If the terms of the IVA are broken bankruptcy may be a possibility

• The IVA will show on your customers credit file

​