Frequently Asked Questions

We’ll ask you about your income, outgoings and your creditors (the people / companies you owe money to) so we can put you on the right path to getting debt free.

We’ll also do a soft credit search to understand the full picture – but this won’t have a negative impact on your credit file or be visible to other companies.

Our initial assessment will inform you of all options for resolving your debts. If you are not eligible for an IVA we will refer you to an FCA regulated company or MoneyHelper to receive full advice regarding your options.

If you are eligible for help with your debts through an IVA, the fee for the Insolvency Practitioners’ work and any other associated costs and fees will be included in your affordable monthly payment amount

We don’t take any payments upfront.

Don’t panic if you don’t know – with your consent, we can carry out a soft credit search that will bring up all your creditor information, including how much you owe and who you owe it to. A soft search means that no negative footprint is left on your credit file.

Reaching out for help with your debts is one of the hardest steps you can take in the process – we know this. It’s never easy.

One of the most frequent pieces of feedback we hear from customers is that they felt like a weight has been lifted once they spoke with one of our advisors. Our team has a wealth of knowledge between us.

The main debt solutions include:

• Debt management plans (DMP)
• Individual Voluntary Arrangements (IVA)
• Bankruptcy
• Debt Relief Orders (DRO)

If you live in Scotland you may also qualify for other options such as a:

• Protected Trust Deed
• Debt Payment Plan via the Debt Arrangement Scheme (DAS)

This is one of the questions we get asked the most, so we have lots of information on how an IVA works and what to expect.

Essentially, IVAs is a statutory scheme as an alternative to bankruptcy that was introduced by the UK Government in 1986, to help consumers people get on top of their finances and reduce unmanageable debts. IVAs involve you only paying what you can afford monthly towards your debts, whilst your creditors agree to write off a portion as well. This is a solution that lasts 5 years, but provides a solution for many consumers who would prefer an alternative to Bankruptcy or Debt Management Plans.

An IVA typically lasts around 5 years. An additional 12 months may apply if you’re a homeowner and cannot release equity in your home.
Following the completion, any remaining debt is completely written off and will no longer appear on your credit file following the sixth year.

We won’t know whether an IVA is right for you until we have a thorough understanding of your personal circumstances. We’d recommend taking a look at our IVA Pros and Cons support page, which will highlight some of the advantages and disadvantages of this particular solution.

Your IVA will be registered on your credit record and it will stay on the register for the period of your IVA and for up to 12 months after your IVA has concluded. The effect of your IVA on your credit rating will depend to some extent on what your credit rating was like before you commenced your IVA.

An IVA is a legally binding, formal agreement between you and your creditors to repay a portion of your debt. An assessment of your income and spending is carried out. This will help determine what you can afford to pay into the IVA each month. Once an amount is established, your creditors vote to decide if the IVA should be approved. The majority of your creditors need to vote for the IVA for it to go ahead – once approved, the IVA usually lasts for 5 years, with any of your remaining debt written off at the end.

Setting up an IVA is very straightforward, but this will need to be done via a licensed Insolvency Practitioner. To set up an IVA, you must include all your unsecured debts.

Also, there are certain criteria that, if met, mean you could qualify for an IVA – this includes things such as a minimum debt level and the number of creditors.

Our team at Money Advice can help get your IVA application together to submit to your creditors. We will always ensure that any proposed monthly payments are entirely affordable to you and that you thoroughly understand the process before you agree to anything.

If you stop paying into your IVA, you will likely breach your contract, and it will fail.

If for any reason, you are concerned that you will struggle to make a payment towards your IVA, you must inform your Insolvency Practitioner as early as possible. It may be possible for alternative arrangements to be made.

Once you have weighed up your options and decided that an IVA is a route you want to take, then this can typically take around 4-6 weeks to set up.

We will need certain documents from you, so the quicker we have these, the faster things can get moving. Once your proposal has been created, your Insolvency Practitioner will meet with your creditors to get this approved.

It’s not common, but if for any reason your IVA application is rejected then we can signpost you to regulated alternative help providers.