About IVA companies

by Darwin on November 26, 2018

In order to enter into an Individual Voluntary Arrangement you’ll need to consult an insolvency practitioner.  These are usually accountants or lawyers and may operate alone or as part of a larger IVA company.

What sort of things do I need to think about?

Before you start to look for an insolvency practitioner it’s advisable to put pen to paper and work out exactly what you owe – and to whom.  This is an important exercise as your chosen advisor will need to know everything about your finances before they start to make contact with your creditors and ultimately, put a repayment plan into place for you.

Once you’ve done that then it’s time to start reviewing IVA companies in order to find the best advisor.  You can do this through online searches, recommendations or even asking local accountants if they can suggest someone for you to speak to. If you are based in Scotland, you will need to look at a Scottish Trust Deed.

What will happen when I meet my advisor?

Most IVA companies offer a free consultation so that you can go along and raise any specific concerns you might have.  Of course, for most, entering into an IVA is a completely new concept but there’s no need to be concerned.  A good insolvency practitioner will be able to answer any questions, advise you as to whether they need any further information and explain the IVA process in much more detail.

If you then decide to proceed after this initial consultation then it’s likely that you’ll be invited back so that you can start the formal process of setting up an IVA.

Of course, in some cases, your advisor might recommend other alternatives and these should certainly be considered since an IVA, once made, becomes legally binding and you’ll be bound by the terms of it for a set period of time.

There are also certain debt types which can’t be incorporated into an IVA so it’s important you keep a very careful note of your debts and to whom they’re owed.  This will enable your advisor to give you the very best advice and ensure that any arrangement you enter into is completely affordable for you.

Is there a charge for entering into an IVA?

Yes.  Ordinarily you’ll be expected to pay to enter into the IVA and to meet the costs of your insolvency practitioner.  Of course, as with any other type of service, the cost of doing this will vary from firm to firm so it’s important to shop around and ensure you get the best deal. That said, always remember that the cheapest option isn’t always the best option.  You need to ensure that you’ll get the best advice and you’ll find that most advisors will simply deduct their fees from your monthly repayments. For most, this is a much better alternative than having to pay the full fee up front since, on average, you can expect to pay between £5,000 and £6,000 for an insolvency practitioner.  In some cases (for example if the Court has referred you to an insolvency practitioner) then you might also have to pay additional fees so always be sure that you’re clear on these before committing yourself.


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