A Brief Guide to IVAs & Protected Trusts Deeds

What is an IVA?

An IVA is a legal process that stops people you owe money to taking action against you, by setting up a payment schedule that you can afford to stick to. It's easy with ID Fraud too.

First we help you to work out how much you can afford to repay every month, then you pay your insolvency practitioner that money and they pay your creditors direct. Then after a fixed period of time - usually 5 years - you have nothing further to pay.

The Benefits in Short

ProtectiveHalts legal proceedings immediately
EffectiveCould allow 75% of the money you owe to be written off.
SensibleWe can sort out a monthly repayment you can afford.
FinalOnce the fixed term is over, you'll be debt-free.

Why an IVA is better than Bankruptcy

If people are taking court action against you, Bankruptcy may seem like the only option. However, opting for Bankruptcy can leave you with long-term problems, such as difficulty in obtaining credit, loans, mortgages, credit cards or even having a bank account for many, many years to come. An IVA will still affect your credit rating but only in the short to medium term.

An IVA, on the other hand, can immediately stop all legal proceedings and harassment, while also freezing interest charges, and allowing up to 75% of your total debt to be written off, as long as you stick to the terms of the IVA.

Then after 5 years, you can be debt-free and ready to start building your credit rating back up again.

The Benefits of a Protected Trust Deed (Scottish Residents Only)

A Protected Trust Deed offers the same benefits as an IVA, as it stops all legal proceedings, freezes interest and other charges immediately and allows for monthly payments you can afford to be agreed.

As long as you abide by the terms of the agreement, a Trust Deed will allow your debt issues to be resolved after as little as 3 years.

Frequently Asked Questions

QuestionI owe more than £15,000 – can I still get an IVA or Trust Deed?
AnswerYes, IVAs and Trust Deeds are designed to help people with large unsecured debts to sort their problems out.
QuestionWill I have to sell my house if I get an IVA or Trust Deed?
AnswerNo, an IVA’s and trust deeds let you sort out Unsecured Debts without having to sell your assets. That’s another way in which they’re a better option than Bankruptcy. If you do have any equity in the property you may be required to try and arrange a remortgage in the later part of the IVA.
QuestionWill I still have to repay all I owe with an IVA or Trust Deed?
AnswerNo, these are designed to allow a reasonable proportion of your debts to be written off, which can be up to 75% depending on your income & expenditure.

 

All our products are subject to status and terms and conditions will apply. Repaying your debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and might be affected in the medium to long term. Set Up Fees and Monthly Management Fees Apply. Telephone calls may be recorded for training and quality purposes.