How An Individual Voluntary Arrangement (IVA) Can Help You

An Individual Voluntary Arrangement (IVA) is a formal arrangement between someone who owes money (debtor) and the people they owe money to (creditors). An IVA is legally binding and administered by a qualified Insolvency Practitioner (IP).

A person who is in an IVA (the debtor) makes agreed monthly payments normally for a period of five years. In some cases, depending on the circumstances a one-off payment can be made; this is known as a lump sum IVA.

Once an IVA has been successfully completed any remaining unsecured debt is written off.

An IVA is only available to people who live in England, Wales, or Northern Ireland. People who live in Scotland can enter into a Protected Trust Deed (PTD), which provides a similar solution to the IVA

An Example Of How An IVA Can Help You:

Breakdown Of Debts
Loan 1£3,300 Payday Loan£1,700 Catalogue£3,300 Credit Card£2,900 Council Tax Arrears£1,300 Overdraft£1,000 Total Debt£13,500

Monthly Repayments

Before IVA:
£300
example of IVA debt solution New IVA Payment:
£114
Breakdown Of Plan
Total Debt Level Before IVA £13,500 Savings in Monthly Payment62% Total Debt Repaid in IVA£6,840 Total Debt Written Off50% Total Amount Of Months @ £11460

* Your new monthly payment is based on your circumstances and all fees are incorporated in your new monthly payment and are negotiated by the IP.

Some Benefits Associated With An IVA:

  • Once the final payment has been made, any remaining unsecured debt is written off.
  • Once the creditors have accepted the IVA, all interests and charges will be frozen.
  • Once the IVA has been accepted, creditors cannot pursue debts. This includes, but is not limited to, the issuing of letters. Court actions associated with the debts will also cease.

Some Downsides And Risks Associated With The IVA:

  • Your IVA will fail if you don’t maintain your monthly payments.
  • Secured debts can’t be included into the arrangement.
  • Creditors can vote against the IVA being accepted.

Here To Help

Everyday life can make managing your finances a challenge. Juggling debt can be daunting too. We can all relate to that ‘more month than money’ feeling!

We’re here to help. Whether you already know the support schemes available, or you’re not really sure, our experts will guide you through the best ways to manage your finances.

Starting with a close look at your individual circumstances we’ll show you the pros and cons for all your option. Clear, ethical and expert debt support. If you need help preparing an individual voluntary arrangement or a protected trust deed we can do that as well. All the empathy, expertise and support you need.

Type Of Debts We Can Help You With

Just a small change in your circumstances can have a big impact when it comes to keeping up with your monthly outgoings. We understand that. We can also help.

credit card icon

Cards

Credit Cards or Store Cards. Easy to spend on, not so easy to pay off sometimes. Especially if the interest is racking up month on month. Easily build up and become unmanageable with missed payments sending charges spiralling. Sound familiar? Find out how we can help you reduce your monthly payments.

loans icon

Loans

Whether unsecured loans or payday loans, it’s amazing how many people find themselves taking on new debt to repay existing debt. It’s an expensive spiral that we can help you break. Talk to us about ways of freeing yourself.

bills icon

Bills

Overdue bills? We can help. Whether council tax arrears, mortgage shortfalls, utility bills or disconnected mobile phone contracts we can help you keep your household up and running.

quickquid logo pfg logo cabot logo capitalone logo barclays logo

Why Choose CMS

Just a small change in your circumstances can have a big impact when it comes to keeping up with your monthly outgoings. We understand that. We can also help.

credit card icon

FREE CONFIDENTIAL ADVICE

Your finances are your business. Our trusted expert advisors always make it their business to always put you best interests first.

loans icon

IN DEPTH ASSESSMENT

A full assessment of your circumstances makes sure we capture all the important information, so we can give you clear and effective advice.

storecards icon

WE PUT YOU FIRST

A well respected and highly ethical company we follow all the latest industry standards. You’re our number one priority..

bills icon

THE SOLUTION THAT’S RIGHT FOR YOU

Free, confidential, no-obligation advice, always. So you can choose what’s best for you.

FAQ's

Will my creditors still be able to contact me if I enter into an arrangement?

Yes they may still contact you, but only while your arrangement is being set up. That’s normal. Once approved your IP (insolvency practitioner) will deal with creditors letters and phone calls directly. If for any reason the creditors still try to contact you, simply inform your IP who will deal with things.

If you have any questions fill in our online form or give us a call to speak with one of our friendly advisors.

I have an attachment of earnings in place can this be stopped?

It is common for some creditors to apply a wage arrestment, also known as attachment of earnings, to collect their debt balance via your earnings. We understand that sometimes this can have a knock-on effect on your day to day life. In some circumstances your IP (insolvency practitioner) will work with your creditors to lift the attachment so you can receive your full wage again.

This agreement will see a repayment amount agreed with your creditor and payable monthly as part of your payment plan. For more information on how this works, please fill in our online form and a senior expert will call you with more details.

What are the costs and fees involved with an IVA OR TRUST DEED?

CMS will never charge for our advice and support. And neither do we charge IVA or Trust deed setup fees.

Once you have spoken to an advisor, explored your options and are happy to proceed you need to provide supporting documents. We’ll check them through and hand them to an IP (insolvency practitioner) assigned as your licensed IP for the duration of your term

The fees of the IP who arranges your IVA or trust deed are always included within your monthly payment and term.

Before the arrangement is accepted your IP will make an agreement with your creditors. Your proposal will include a breakdown of the IP fees. Fees that never impact on the duration of your plan.

Once your plan is accepted CMS receive a application setup commission from the IP. Again, this has no effect on your monthly payment or term.

Remember: If at any stage you decide that you do not wish to go ahead you will never be charged for the advice you have received from us. Our advice is ALWAYS completely free.

How do I check if I qualify?

Simply fill in a form on our website and one of our friendly specialist advisors will be in touch.

With each advisor enjoying more than 10 years’ of experience so you can be sure that you’re always in the safest of hands. We’ll complete a detailed fact find to find out more about your current circumstances and once completed we’ll make you aware of the solutions that you qualify for. That way you can make an informal decision on the solution that suits you best.

If you have a question or you are wanting to see if you qualify just give us a call or fill in an online form. We’ll get straight back to you.

And remember: All advice is free, is confidential and comes with no obligation.

What kind of debts can be included?

If you are struggling with your finances, an IVA or an Trust deed may be an perfect way to put all your outstanding debts into one monthly affordable payment.

Many people are unaware of the types of debts that can be included but our friendly experts can clearly talk you through each.

In fact most debts to which a wage arrestment/attachment of earning can be applied can be included within your arrangement.

Please be aware that any secured debts like mortgages, secured loans and car hire purchase cannot be included into your arrangement. Secured against the asset they need to be prioritized and paid on time each month.

If you advice on the status of debt please give us a call and we’ll be happy to help.

Other Debt Solutions

What is a debt management plan (DMP)?

A Debt Management Plan (DMP) is an informal arrangement that helps you to manage your debts.

Any debts managed through a DMP will ultimately be paid off in full, provided that the payments are maintained.

Payments in a DMP are normally calculated on what you can afford after accounting for essentials, such as household bills.

Once the DMP is set, your interest and charges may be frozen or reduced - but this will also depend on the creditor. This could also increase the length of time needed to repay outstanding debts in full.

If you live in England, Wales, Northern Ireland and Scotland you are eligible for a DMP. If you live in Scotland, a DAS can also provide a similar solution to a DMP.

Some benefits to the DMP:

  • The DMP provides a flexible arrangement with one monthly affordable payment which is split between your creditors on a pro-rata basis.
  • Interest and charges may be frozen.
  • The DMP is an informal arrangement, so you can leave it once your circumstances are back under control.

Some downsides and risks associated with the DMP:

  • As you are making reduced payments, your credit rating will be affected.
  • The DMP may increase the length of time needed to repay your debts in full due to the lower reduced monthly payments that are being made.
  • Some of your creditors may still contact you in spite of the DMP. However, your DMP company will offer support and advice.

** We recommend that you book an appointment at your local Citizens Advice Bureau (CAB). You may also want to have a look at the Money Advise Service website, which will provide you with free and impartial advice.

What is a debt relief order (DRO)?

A Debt Relief Order (DRO) is an alternative to bankruptcy. It lasts for 12 months and allows debts to be written off for people on relatively low incomes.

To qualify for a DRO you must not own a home, have assets of less than £1,000 (excluding a vehicle), have debts of under £20,000, and have a monthly disposable income of less than £50.

A Debt Relief Order freezes debt repayments and interest for 12 months. If the financial situation has not changed by the end of this period, debts will be written off.

A DRO is only available to people who live in England, Wales, or Northern Ireland. If you live in Scotland, a Minimal Assets Process (MAP) provides a similar solution to a DRO.

Once the DRO is set, your interest and charges may be frozen or reduced - but this will also depend on the creditor. This could also increase the length of time needed to repay outstanding debts in full.

Some benefits to the DRO:

  • Your creditors cannot pursue your debts during the 12-month period.
  • You will not be asked to pay anything towards your debts for 12 months. After the 12-month period, your debts will be written off.
  • The DRO can be a low-cost alternative to bankruptcy.

Some downsides and risks associated with the DRO:

  • Homeowners are not eligible for the DRO.
  • Your details will appear on a public register.
  • Your credit rating is negatively affected.

** We recommend that you book an appointment at your local Citizens Advice Bureau (CAB). You may also want to have a look at the Money Advise Service website, which will provide you with free and impartial advice.

What is bankruptcy?

Bankruptcy is a legal proceeding and form of insolvency. It is normally suitable for situations where you cannot repay your debts within a reasonable time.

Your assets, such as your house or car, will usually be sold to pay off your debts. This means that if your assets are worth more than your debts, bankruptcy is unlikely to be your best solution.

In some cases, you may be asked to make monthly payments towards your debts from your available monthly income. This is known as an income payment agreement and may be payable for up to 36 months.

There are three routes to seeking bankruptcy:

  • By a creditor
  • By an IVA Supervisor application
  • By your own petition for bankruptcy

Some benefits to bankruptcy:

  • You will receive no further contact from your creditors
  • If you qualify for the process, all unsecured debts are written off.
  • Creditors can no longer take legal action.

Some downsides and risks associated with bankruptcy:

  • Any assets you own will be included within your bankruptcy proceedings, and likely to be sold.
  • Credit rating is negatively affected and will remain on your credit file for 6 years.
  • Your details will appear on a public register.

** We recommend that you book an appointment at your local Citizens Advice Bureau (CAB). You may also want to have a look at the Money Advise Service website, which will provide you with free and impartial advice.

What is a debt arrangement scheme (DAS)?

Debt Arrangement Schemes (DAS) are endorsed by the Scottish government. They allow you to repay your debts at an affordable rate over an extended period of time, whilst giving protection against creditor actions.

The monthly payment is based on the amount of money you have left once you have paid all your household bills. Once approved, you will be protected from creditor actions and all interest and charges will be frozen.

Your DAS will be set up and managed by an ‘approved money advisor’. Payments under the DAS are taken and passed onto your creditors by a ‘payment distributor’.

Only people who live in Scotland are eligible for a DAS. If you live in England, Wales, or Northern Ireland, a Debt Management Plan (DMP) can provide a similar solution to a DAS.

Once the DAS is set, your interest and charges may be frozen or reduced - but this will also depend on the creditor. This could also increase the length of time needed to repay outstanding debts in full.

Some benefits to the DAS:

  • Any interest and charges that are being applied to your debts are frozen.
  • Any assets are protected.
  • Creditors cannot contact or take legal action against you.

Some downsides and risks associated with the DAS:

  • Your details will be put onto the DAS register, which is accessible to the public.
  • Your credit rating is negatively affected and will remain on your credit file for six years.
  • The DAS may increase the length of time needed to repay your debts due to the reduced monthly payments.

** We recommend that you book an appointment at your local Citizens Advice Bureau (CAB). You may also want to have a look at the Money Advise Service website, which will provide you with free and impartial advice.

What is a minimal asset process (MAP)?

A Minimal Asset Process (MAP) bankruptcy gives you a fresh start, allowing you to write off your unsecured debts (between £1500 and £17000) within a short period of time.

It is aimed at people with low incomes, that have no disposable income left outside of essential household bills. The process usually lasts for six months.

A MAP is only available to people who live in Scotland. If you live in England, Wales, or Northern Ireland, a Debt Relief Order (DRO) provides a similar solution to the MAP.

Some benefits to the MAP:

  • Your debts will be written off once the MAP is completed and accepted.
  • A MAP can be a low-cost alternative to sequestration.
  • Creditors cannot contact or take any legal action against you.

Some downsides and risks associated with the MAP:

  • Homeowners are not eligible for the MAP.
  • Your details will appear on a public register.
  • Your credit rating is negatively affected.

** We recommend that you book an appointment at your local Citizens Advice Bureau (CAB). You may also want to have a look at the Money Advise Service website, which will provide you with free and impartial advice.

What is sequestration (Scottish Bankruptcy)?

Sequestration is a legal proceeding and form of insolvency. It is normally suitable for situations where you cannot repay back your debts within a reasonable time.

Your assets, such as your house or car, will usually be sold off to pay your debts. This means that if your assets are worth more than your debts, sequestration is unlikely to be your best solution.

Sequestration allows you to write off any remaining unsecured debt after one year. Your application will go through the Accountant in Bankruptcy (AIB).

Sequestration is only available to people who live in Scotland. If you live in England, Wales, or Northern Ireland, bankruptcy provides a similar solution to Sequestration.

Some benefits to Sequestration:

  • You will receive no further contact from your creditors.
  • All unsecured debts are written off after one year.
  • Creditors can no longer take legal action.

Some downsides and risks associated with Sequestration:

  • Any assets you own may be included within your Sequestration, and likely to be sold.
  • Your credit rating is negatively affected and will remain on your credit file for six years.
  • Your details will appear on a public register.

** We recommend that you book an appointment at your local Citizens Advice Bureau (CAB). You may also want to have a look at the Money Advise Service website, which will provide you with free and impartial advice.