Author Topic: IVA good idea?  (Read 73377 times)


  • *
  • Posts: 1
IVA good idea?
« on: Feb 15, 2018, 09:49:30 PM »

I applied online for debt help with a company called brighter future solutions, I have around £20,000 with Loans & credit cards I'm paying around £500 a month. I was told by the advisor I can write off a high percentage of my debt, they were very In depth and went through everything with a fine tooth comb.

They lowered my payments to £120 a month but because I've got a property with a lot equity in it they said the term would be over 6 years, I'm a little bit worried that the creditors will take further action is this possible once the agreement has been set up?

Ive had a few missed payments and I'm really struggling, is it genuine can I really write off most of the debt I'm worried it's a scam! Seems to good to be true.

Lisa Thomas

  • Hero Member
  • *****
  • Posts: 119
Re: IVA good idea?
« Reply #1 on: Feb 16, 2018, 11:48:25 AM »

If an IVA is approved, all creditors (regardless of whether or how they voted) are legally bound by it so cannot take any further action against you (unless it fails).

5 years plus one year extension in lieu of the equity is the standard term for IVAs that use standard 'Protocol' Terms and conditions.

It has to be attractive to creditors for them to accept it, when compared to Bankruptcy and what dividend they might get if Bankruptcy took place.

You will need 75% of creditor in value that vote, to vote in favour to get the IVA approved.

Are they suggesting your only asset in an IVA would be contributions from your income and that they would be £120 per month?  This is quite a low return to creditors and would need to be attractive when compared to bankruptcy si will depend on what equity you have in your home. 01752 786800


  • Jr. Member
  • **
  • Posts: 19
Re: IVA good idea?
« Reply #2 on: Mar 02, 2018, 12:31:58 AM »
If you have a lot of equity in your house the creditors may not accept an IVA although there's no harm in trying. Bear in mind creditors could apply for Charging Orders on your property if you are not in an IVA which would secure the debt against your house. Those are to be avoided at all costs as they can be enforced legally.