An IVA may not be suitable in all circumstances.

Fees apply to the service, click here for more details. Your credit rating may be affected. Read more about IVAs here.

IVA Myths: “IVAs leave you with no spare money”

We regularly see people make the statement that IVAs “leave you with no money”, however, an IVA will allow sufficient funds to cover your living expenses, before any payment is offered to creditors.

It can be difficult to decide on which debt solution is right for you. For this reason, we're here to reassure you that an IVA will allow you to meet your day-to-day expenses and repay your debts through an affordable monthly payment plan.

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What is an IVA?

For us to clearly understand the phrase used by some people that IVAs “leave you with no spare money”, we must first understand what an IVA is:

IVAs are a specific form of insolvency that allow people in debt to consolidate their repayments into one that is affordable. IVAs are a great way for some people to manage their debt. They offer legal protection from creditors, asset loss, and unfair repayment plans. Plus, interest and charges are frozen for people on an IVA, so that their financial position does not get worse.

IVAs are available in England, Wales, and Northern Ireland.

If you are looking for more information about IVAs, our friendly team of experts are happy to explain what an IVA is in greater detail. They can also offer advice that is specific to your financial situation so that you can make an informed decision on which debt solution is right for you.

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What makes IVAs affordable?

An IVA is designed to be an affordable long-term plan of debt repayment for people who are struggling to manage their finances. Therefore the phrase IVAs “leave you with no money” is not correct as your monthly expenditure will be taken into account in an IVA before any repayment is made to your creditors, ensuring you have enough funds to live on.

Here is how an IVA has been created to be an affordable debt solution:

All IVA payments are calculated after a thorough assessment of someone’s income and expenditure - Each IVA is different, as the payment plan is designed specifically for each person’s individual circumstances. The IVA considers people’s needs. For example, the IVA payment will ensure that you can still afford to pay bills, buy food and clothes, and look after yourself and your family.

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All IVAs are administered by professionals – By law, all IVAs must be run by an Insolvency Practitioner who is licensed and authorised by a regulatory body such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Insolvency Practitioners Association (IPA). Many Insolvency Practitioners are accountants and have a lot of knowledge in supporting someone who is struggling with debt and money problems.

Here at Debt Support Centre our team members receive accredited Debt Advice Training, so that we can give you expert, honest help.

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What if your financial situation changes during your IVA?

Do not worry – if your circumstances change during your IVA, there are procedures in place to support you., Your changes will be reviewed, and a revised income and expenditure will be completed to review your payments to ensure they are still affordable for you.

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Additionally, once your IVA is approved, your case will be taken care of by a specialised Supervisory team working on behalf of the Insolvency Practitioner. This team will be there for you every step of the way.

Any issues, queries, or concerns will be addressed by them, they will be the helping hand or listening ear you may need along the journey to better finances.