IVA | Debt Article

IVA UK online

An Iva UK online provides customers with the opportunity to clear their debts using a government approved debt solution over a five year period. The Iva UK online debt management scheme will see those customers who are over £15,000 in debt apply to their creditors to be able to pay back an affordable monthly repayment over five years, with their interest frozen at 0%.

The Iva UK online customer must owe over £15,000 to more than one different creditor, and must have an income for the debt advisor to be able to work out an affordable monthly repayment.

How does an Iva UK online work?
When a customer applies for an Iva UK online they will be assigned a debt advisor who will give them advice through the whole process.
The debt advisor will work out how much the customer can afford to pay back on a monthly basis, by looking at their income and reasonable living expenses, including any car insurance, mortgage or rent payments, utility bills, phone bills and general living costs.

They will then take your proposal to the court, who will ask your creditors if they accept your proposal. If 75% of your creditors, by value of debt,  accept your proposal then all creditors must freeze your interest at 0%, accept your monthly payments without  bailiffs or CCJs, and wipe any remaining debt at the end of the five year period.

Why would my creditors accept my Iva UK online?
Many people ask why any creditors would accept an Iva UK online as they are only going to lose money, but the truth is, any customer applying for an Iva UK online is in a dire financial situation, and could be on the verge of bankruptcy anyway. Without the Iva UK online, the creditors would lose more money through a bankruptcy anyway, and they know that they will get some return on their investment through the Iva UK online.

What if I’m not £15,000 in debt?
If you are not £15,000 in debt, it’s not a good idea to push yourself further in debt, just to apply for an IVA. There may be other schemes available to help you out, so call our advisors now so that we can help you find a way out of debt, and back to a fresh start.