How much does an IVA leave you to live on? Before this question can be answered, understanding the IVA meaning is recommended. An IVA is an individual voluntary arrangement that is a formal, legally binding agreement reached between an individual and creditors to repay debts over a fixed period. Your IVA monthly payment will be based on affordability, not your overall debt. While an IVA can help you get back on your feet financially again, you’ll probably want to know how much does an IVA leave you to live on before you apply for an IVA. In this guide, you’ll get the answer to how much does an IVA leave you to live on, find out the process and costs, and learn more about what happens during and after you’re placed on the insolvency register.
So, How Much Does an IVA Leave You to Live On in UK?
If you want to know how much an IVA leaves you to live on, it’s important to note that there’s no one-size-fits-all IVA solution. Each situation is based on the merits of that individual case.
Factors influencing how much an IVA will leave you to live on are based on your financial circumstances, including:
- Your level of debt – how much money you owe to creditors
- Your current income – how much money you collect each month, including benefits, pension and work (salary/wages)
- Affordability – how much money you have left each month after you have paid your priority expenses and essential costs
With the assistance of a reputable insolvency practitioner, you will most likely pay around 25% of your total debt once the IVA term has come to an end.
Now, Where Can I Get An IVA? Top 4 Best IVA Debt Options UK for 2023 ✅
- Debt Nurse : Best Platform to Apply for No Obligation IVA Advice from Accredited Debt Solution Advisors
- Viva Debt Help : Ideal platform to Request Contact from Debt Solution Advisors that Assist with Ensuring Your Details are Removed from the Insolvency Register 3 Months After the Agreement is Settled
- 123 Debt Fix : Trusted Platform for Over-Indebted Individuals to Apply for Further IVA Debt Advice from Debt Solution Providers
- Help My Debts Pro : Reputable Platform to Apply for an IVA Advisor to Contact You for Advice and Guidance
Best IVA Debt Solution Providers in the UK 2023 ✅
Below is a full review on each of our top 4 IVA debt options in the UK.
Debt Nurse: Best Platform to Apply for No Obligation IVA Advice from Accredited Debt Solution Advisors
Debt Nurse is a platform that connects overindebted individuals with IVA advisors. While you can’t apply for an IVA or gather direct advice from Debt Nurse, the debt solution advisors they’ll put in touch with you are accredited, reputable, and reliable.
Highlights of No Obligation IVA Advice
- No obligation to accept options presented
- Get help settling credit cards, IVAs, council debt and store cards
- Peace of mind
Pros of Using Debt Nurse to Connect with IVA Debt Solution Advisors
- Freeze interest and fees
- Get help writing off debts over £5,000
- Start with a confidential debt assessment
Cons of an IVA
- You’ll be on the insolvency register for the duration of the IVA
Viva Debt Help: Ideal Platform to Request Contact from Debt Solution Advisors that Ensure You’re Off the Insolvency Register within 3 Months of IVA Completion
Viva Debt Help is another platform known for helping over-indebted Britons connect with debt solution advisors that can explain the process of IVAs and what to expect before, during, and after. The debt solution advisors you’ll be connected with will also help to ensure your details are removed from the insolvency register 3 months after your IVA is complete.
Highlights of IVA Advice via Viva Debt Help
- Access a wide range of debt relief service providers
- Quick and easy application to indicate you’d like assistance
- Debt assessment takes minutes and is confidential
Pros of Getting IVA Advice Through Viva Debt Help
- Speak with friendly advisors who’ll check if you qualify
- Get advice from reputable and accredited advisors
- Clear debts over £5,000
Cons of IVAs
- Only unsecured debt can be included in the agreement
123 Debt Fix: Trusted Platform for Over-Indebted Individuals to Apply for Further IVA Debt Advice from Debt Solution Advisors
123 Debt Fix has a reputation for effectively connecting over-indebted individuals with debt solution advisors who present a variety of debt relief options, including IVA debt relief advice. There’s no obligation when using the platform, and you’ll only be charged when the IVA is set in place.
Highlights of Obtaining IVA Debt Advice through 123 Debt Fix Advisors
- No obligation IVA debt advice
- Get quickly connected with qualified debt solution advisors
- Cover outstanding debts on store cards, credit cards, personal loans and council tax
Pros of Getting IVA Debt Advice
- No frills
- Quick, discreet debt assessment
- Friendly advisors
Cons of IVAs
- Most IVAs last 6 years from the date it’s approved and activated
Help My Debts Pro: Reputable Platform to Apply for an IVA Advisor to Contact You
Help My Debts Pro is a reputable platform dedicated to helping over-indebted Brits get in touch with advisors who can help them to apply for an IVA. The platform doesn’t provide advice but captures your details and passes them on to reputable, accredited, and qualified advisors.
Highlights to Expect When You Apply for an IVA
- Simple process
- Qualified advisors
Pros When You Apply for an IVA
- Write off debts over 5k
- One quick form
- Discover all your options
Cons When You Apply for an IVA
- IVAs not suitable for all circumstances.
What is an IVA? What is an IVA Meaning?
Before you can decide if an IVA is right for you, it’s a good idea to understand the IVA meaning. So, what is an IVA? An IVA meaning is an individual voluntary arrangement. It’s a legally binding agreement that’s struck between you and your creditors, detailing how you will pay your debts off over a specific period. The arrangement legally binds both parties, but an IVA gives you more control over your assets than bankruptcy would.
Will an IVA Affect My Credit Rating? How Long Will I Be on the IVA Register?
One of the first things that over-indebted individuals in the UK want to know is, will an IVA affect my credit rating. The short answer is yes, and IVA will affect your credit rating. The next question that comes up is, how long will I be on the IVA register? Most IVAs last for 6 years from the date that it is activated and once the 6 years are up and the agreement has been fulfilled, you can expect your details to remain on the insolvency register. They are then removed from the register.
Getting Onto the Individual Insolvency Register: What Does an IVA Cost?
Setting an IVA in place is essentially getting your details onto the individual insolvency register. And that comes at a cost. So, what does an IVA cost?
The only time you will be charged fees is when you select a debt solution, but the fees will form part of your entire package and not be required as a lump upfront sum.
Most IVA fees include a supervisor fee, a nominee fee, and disbursement fees, which can vary greatly depending on the insolvency practitioner and the amount of debt you owe.
Nomination fees can range from £1,000 to £2,220 to cover the initial consultation and IVA proposal development if accepted. Supervisor fees are typically in the region of 15% and covers the likes of annual financial reviews and the overall management of your IVA.
Disbursement costs can also vary from one insolvency practitioner to the next and cover all miscellaneous types of payments, such as legal advice from debt management companies, registration fees and system maintenance.
When speaking with a debt solution advisor, you’re not obligated to take on any of the options provided to you. You are only charged when the IVA is set in place, with the fees forming part of the package and spread over the term of the IVA.
What’s an IVA Spending Restrictions?
IVAs come with certain requirements for the individual who takes them up. Anyone in the UK agreeing to an IVA will undoubtedly experience financial relief, but there are strict rules that must be followed regarding how you spend money while the IVA is in place. These IVA spending restrictions will stipulate that you cannot make large purchases or investments. You also cannot buy holidays or luxury items and you’ll be restricted from getting credit access.
IVA spending restrictions aren’t a punishment but are designed to ensure that the payment agreements that form part of your IVA are adhered to and that the debt can be settled in the projected timeframe.
IVA restrictions will usually also stipulate that you must have regular consultations with your insolvency practitioner, where you’ll be expected to provide full disclosure of your finances. While this can seem restrictive, setting up an IVA with the right insolvency practitioner will mean that your financial situation and circumstances will be considered to ensure things aren’t too restrictive or uncomfortable.
Conclusion: Individual Voluntary Arrangement in Summary 🥇
In short, setting an individual voluntary arrangement in place is something you will need to do with the assistance of a reputable and accredited insolvency practitioner. As the arrangement is legally binding, choosing a service provider with a good reputation in the industry is a good idea. Using one of the recommended platforms to safeguard you from selecting the wrong advisor or insolvency practitioner is a step in the right direction. Visit the Debt Nurse website, complete the quick online debt assessment form and wait for a advisor to get in touch with you.
Are There IVA Companies to Avoid?
Yes, IVA companies to avoid are those who might tinker with the results of your debt assessment or application to ensure a specific outcome. The trouble with this is that your IVA may fail, or you may find yourself even further over-indebted or paying higher fees than you need to when dealing with an IVA company that should rather be avoided. There are currently five IVA companies to avoid in the UK, each of which has come under the scrutiny of the Financial Conduct Authority. These include Assist UK Group Limited, Two Financial Services Limited, Consumer Money Worries Ltd, Faith Financial Solutions Ltd, and Debt Help Limited.
How Much Does an IVA Leave You to Live On?
Your IVA will leave you with an amount to live on that’s comfortable enough to afford your regular day-to-day expenses. That said, the exact amount will depend on affordability, your level debt and the insolvency practitioner you work with.
What are IVA Loans?
IVA loans, or IVA settlement loans, are usually offered to people halfway through their IVA arrangement. IVA loans can be more expensive than IVA, but some individuals like being free from the conditions and restrictions of the IVA earlier.
Do I Need an Insolvency Practitioner when Applying for an IVA?
The UK Government website recommends using an insolvency practitioner to set up an IVA.
Can I Apply for Loans with IVA in Place?
Spending restrictions are expected when you have an IVA that stops you from accessing further credit, including loans. If you need a loan, you can request that your insolvency practitioner write a permission letter stating that they will supervise the arrangement. This doesn’t guarantee that you will get the loan, though.
Can You Pass a Credit Check with Individual Voluntary Arrangements in Place?
It’s not impossible to pass a credit check, but it’s unlikely, as there will be a note of your IVA on your credit record for the duration of the IVA agreement.
How Much Time Can Early Settlement Loans with an IVA Give Me?
If you’re applying for early settlement loans with an IVA, you could shave off 2 years from your IVA payments. This, of course, depends on the loan amount and your individual financial circumstances.
Disclaimer: All debt solutions should be very carefully considered. The websites advertised in this paid promotion do not provide debt advice. If you complete the form and provide permission to be referred, they will pass your details onto a regulated debt advice solution provider. All the partners they use are regulated by the Financial Conduct Authority to provide debt counselling. The websites advertised work exclusively with trusted debt solution providers. If you proceed with one of their solution options, they may receive a fee for introducing you to them. The websites advertised are lead generation companies who pass your details onto third parties in order to help you with your debt solution.
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