Frequently Asked Questions.
“Will my credit rating be affected if I enter an IVA?”
If you decide to enter an IVA with Debtfree-iva.co.uk you will have to give up all your current credit such as credit cards and store cards and you will not be allowed to take additional unsecured borrowings. This however will only last for the duration of the IVA and afterr your IVA is completed, you will also be able to take out secured borrowing such as taking a mortgage to purchase a house.
It is even possible to take a mortgage or remortgage whilst you are still within an IVA however in order to do this you will need to seek the advice of your Insolvency Practitioner in order to proceed.
Whilst your credit rating will be affected in the short term, it would not be as detrimental as continued missed payments that may result in county court judgments (CCJ’s) or registered defaults as the creditors appreciate the fact that you are actively trying to do something about your debts.
“What happens after I have finished my IVA?”
Once that your final payment has been met you will be cleared of all debts included within the arrangement. The outstanding balances of any of these debts will be written off and you will be free of these debts permanently.
“ What will happen if I miss a payment while I’m in an IVA?”
Once that you have entered your tailored Debtfree-iva.co.uk arrangement it is vitally important that you continue to make the scheduled payments each month.
However, if you do ever genuinely need to miss a payment for any reason, this may be agreed with your IP. Creditors however will normally make a undertaking in the agreement that no more than one or two payments can be missed during any 12 month period during the IVA.
“How long will my IVA last for?”
A standard Debtfree-iva.co.uk IVA will typically last for 5 years, however in some cases our clients have received “windfall” sums of money that we have been able to use to negotiate full & final settlements with which therefore reduced the term of the IVA significantly.
“How much money will I have to pay into my IVA each month?”
The monthly payment we agree between you the client and Debtfree-iva.co.uk will be based on your disposable income. This is the amount of money that you are left with each month after you take away your monthly living expenses, not including your debts from your monthly income.
The monthly payment figure agreed for your IVA will depend on your personal circumstances and will be agreed between you, the Insolvency Practitioner and your creditors. Normally in order for Debtfree-iva.co.uk to be able to negiotiate the IVA with your creditors the monthly payment will not be below £300.
Share this page
|
Post to Furl
