Many people in an IVA are currently struggling because of the large rises in bills and prices in 2022. The Insolvency Service has now issued Guidance to support the IVA protocol. (That is confusingly laid out - look for the section headed 60) Guidance to support the IVA protocol for existing protocol compliant IVAs: 26 June 2022.) This sets out what extra help IVA firms should provide … [Read more...]
Articles about what happens in an IVA
This page, and the following ones, list all Debt Camel articles about the practical aspects of IVA - from what happens at your first annual review to what you can expect after you make your last payment.
Also read Debt Camel's Guide to IVAs which gives an overview for anyone thinking of starting an IVA. IVAs are great options for some people, but they are too often "sold" as an easy, affordable option to people who have better alternatives for sorting out their debts. Do your research!
If you are interested in debt policy and news, look at the IVA News Archive.
On 13 May 2022, the Insolvency Service announced that Vanguard Insolvency had been wound up "in the public interest". Vanguard set up and ran Individual Voluntary Arrangements (IVAs). These are long-term agreements between a customer and their creditors that are increasingly criticised as being mis-sold to vulnerable customers. However, Vanguard has not been shut down for mis-selling IVAs, … [Read more...]
An Individual Voluntary Agreement (IVA) is a formal, legal contract for a set period, usually five or six years. To finish your IVA sooner and have the remainder of your debts written off, you need to talk to your IVA firm, say how much you are offering and where the money is coming from. Your creditors will need to approve this offer. How much you should offer as a Full and Final (F&F) … [Read more...]
Individual Voluntary Arrangements are complicated long-term legal agreements. A lot can change in your life during the 5,6 or 7 year term your IVA lasts. Sometimes your IVA firm isn't as helpful or sympathetic as you think it should be. You should always be treated politely and have things explained to you. If there is something really wrong with the way your IVA is being handled, then you … [Read more...]
The latest official government statistics (IVA Outcomes - 2021 ) show that increasing numbers of IVAs do not complete. They fail, leaving the borrower back with their debts. 32% of IVAs started in 2016 have failed. And a lot of these 2016 IVAs are still continuing, so the final failure rate will be over a third. If you are thinking of starting an IVA, you need to know about these IVA failure … [Read more...]
If you can't make the payment to your Individual Voluntary Arrangement (IVA) this month, don't panic! There may be options for you to cope and get your IVA back on track. This is very common - five or six years is a long time for everything to go smoothly in your life. And in June 2022, new and more generous help has been brought in for people struggling because of inflation. You do need to … [Read more...]
Are you in the last year of an IVA and have a house with equity? You may have to try to remortgage your house to pay some of the equity into your IVA. This article looks at the questions people have about how equity release works in an IVA and what happens if you can't remortgage. If you are thinking about an IVA, see this covers what you need to check with your IVA firm before signing … [Read more...]
Many people have been mis-sold IVAs when they had a better (cheaper, quicker, less risky) debt option available. These other options were ignored or not properly described by some firms that should have given proper debt advice. IVAs are the only debt solution in England, Wales and Northern Ireland that generates large fees for the firms setting them up. These fees can distort debt advice given … [Read more...]
The IVA Protocol 2021 was published in April 2021. This replaces the old 2016 Protocol which should not be used for new IVAs after 1 August 2021. The terms of IVAs already in progress are not affected by the new version. The new Protocol aims to be easier to understand for people in debt - for example "debtor" has been replaced by "consumer" and it has been put into the typical "gov.uk … [Read more...]
Many people with IVAs found their finances were badly affected by Coronavirus in 2020 and 2021. In April 2020 the Insolvency Service issued guidance giving extra flexibility for Protocol IVAs where the borrower has problems because of Coronavirus, see Coronavirus (COVID-19) Guidance for the Straightforward Consumer IVA Protocol. From August 2021 it continues in a reduced form to December … [Read more...]