Frequently Asked Questions

An IVA is a formal agreement between you and your creditors to repay a portion of your debts over a fixed period, typically five years. During this time, interest and charges on your unsecured debts will freeze, and any remaining debt at the end is written off. Your monthly payments are based on your affordability after resonable living costs.

To qualify for an IVA, you typically need to owe at least £6,000 to at least two creditors and be able to afford at least £100 per month towards your debts after living expenses. There is no upper limit on the amount of debt you can owe.

There’s no limit to the amount of debt an IVA can write off. However, your creditors will vote on your proposal. If the amount you’re proposing to write off seems unreasonable, they may reject it. We can provide guidance on a suitable offer for your creditors. It’s important the offer remains affordable for you after considering your living expenses.

A standard IVA protocol protects your home you will never be forced to sell your property in an IVA. In some situations, a remortgage to release some equity maybe loooked into if available.

We will assess your income and expenses to determine a realistic monthly IVA payment that allows you to cover your living expenses. Creditors don’t expect you to live in poverty. Reasonable expenses like sports and hobbies are acceptable. If you earn extra income, you may need contribute a portion to your IVA while keeping at least 50% for yourself.

The IVA setup process typically takes between 16 and 30 days. There will be time for all parties to review the proposal and ask questions before it’s approval.

There are two fees associated with an IVA:

Nominee’s fee: This covers the initial setup of your IVA.
Supervisor’s fee: This covers the administration of your IVA throughout the term.
The important point to know the fees and costs of an IVA is that the costs are deducted from your agreed affordable monthly payments. In the example below, you will see that no fees or costs will be payable by you in addition to your agreed monthly IVA contributions.

IVA fees and costs example

60 payments of £150 = £9,000

Less

Nominee’s fee: £1,000

Supervisor’s fee: £1,200

Disbursement costs: £300

Balance payable to creditors: £6,500

Creditors’ claims: £15,000

% distribution to creditors: 43.33%

You can access a free personal credit report online from Experian or Equifax. This report includes details on all your debts, credit score, and how lenders may view future credit applications.

Yes, IVAs were originally designed to be an alternative for self-employed individuals facing financial difficulties. Many non-self-employed people also find IVAs a suitable solution. We are experienced in helping self-employed business owners benefit from IVAs. We can prepare proposals that explain how you expect to generate future income for your IVA contributions.

We have built strong relationships with many creditors and their agents, allowing us to advise you on how they might react to your IVA proposal. We’ll only recommend proceeding if we’re confident your creditors will approve it.

Yes, your IVA is a confidential agreement between you and your creditors. While a record of your IVA will be registered on the government Insolvency Register, only the details of your name will be publicly available. The terms of your IVA with your creditors remain confidential.

Yes, some people enter IVAs while unemployed. You should consider if other debt solutions might be more suitable for your circumstances, such as a Debt Relief Order. If you can afford IVA contributions and your proposed budget is realistic, there’s no reason you can’t propose an IVA to your creditors.

Yes, changes in your circumstances might allow for an early completion of your IVA. For example, if you receive financial help from someone close to you, you could propose a lump sum payment to settle your debts instead of continuing monthly payments. This can be attractive to creditors as they receive their money sooner, even if it’s a slightly lower total amount than originally anticipated. Discuss any early completion proposals with your supervisor. They can advise you on the likelihood of creditor acceptance and will help you present a fair and reasonable offer for their approval.

Your IVA can include CCJs, even if creditors have taken enforcement actions against you. Once your IVA is approved, all enforcement actions must cease.

Since an IVA is a legally binding agreement, you can’t simply cancel it. Carefully consider your options before proceeding. Ensure you understand the terms before signing and sending the proposal to creditors. If you miss payments, your supervisor will have to take steps to terminate the IVA unless arrangements are made to catch up. Termination means little will be paid to creditors, and they can resume collection efforts. However, creditors might agree to conclude your IVA early if you’ve substantially met your obligations due to unexpected circumstances like illness preventing you from working.

Yes, you can change your car during an IVA. Creditors understand the need for a reliable car for work. You just need your IVA supervisor’s consent for any new financing to ensure it’s affordable and reasonable.

Your current lender will usually offer you a new mortgage deal once your deal comes to an end. a new Mortgage requires new credit, so you’ll need your supervisor’s consent. Finding a lender willing to offer a mortgage before your IVA ends might be difficult. If you do find one, your supervisor will likely approve as long as you can still afford your IVA contributions.

You can change jobs freely during your IVA. If your income increases, you might need to inform your supervisor as it could affect your contributions during the annual review. Creditors might allow you to increase contributions by up to 50% of your net income increase, but you can deduct additional living expenses or work-related costs.

Your IVA proposal might allow your supervisor to request changes to the terms from your creditors. Creditors understand that unexpected events can happen, and they might agree to variations to keep the IVA going. If something significant happens, like long-term illness, inform your supervisor to discuss how to modify the IVA (e.g., reduced contributions).

Most IVAs last five years. The IVA protocol outlines how to handle payment problems. Your proposal might allow for payment breaks if your circumstances change. If your situation changes permanently, your IVA supervisor might need to get creditor approval to reduce your payments. As long as you’ve been cooperative and honest, creditors are more likely to work with you.

The IVA protocol allows for payment breaks due to unexpected changes in your circumstances. Missed payments will be added to the end of your IVA, extending its duration. If your situation changes permanently and you can only afford lower contributions, your creditors will likely agree to modify your IVA terms upon explanation.

Most unsecured debts can be included in your IVA, except for things like court fines/student loans/criminal debts. Debts to family or friends might be included if there’s enough leftover after paying other creditors and IVA costs. Secured debts like mortgages and car loans typically aren’t included. You can include debts owed to the HMRC for unpaid taxes and certain bills. we will advise you on whether including certain debts is realistic for your IVA’s approval.

Once your IVA concludes, you’ll receive a completion report from your supervisor. They will update the official Insolvency Register and your credit file to reflect the successful completion of your IVA. The record should disappear from your credit report within a year. Your creditors will also receive a final report detailing the total amount they received after IVA costs.

Your IVA agreement includes the option to adjust the terms if you face unforeseen circumstances like illness. Inform your IVA supervisor as soon as possible so they can help you create a revised plan with potentially lower monthly payments. They will guide you through the process of getting creditor approval for these changes. Generally, most variations are approved, requiring agreement from 75% of your creditors by value of debt.

A joint IVA is for two people who owe debts together. In these cases, contributions might be paid into a single pool and distributed proportionally among creditors. Each person is still responsible for meeting their obligations under the IVA. If one person defaults, it can jeopardize both interlocking IVAs.

Each year, your supervisor will review your income and expenses. They will send a report to your creditors summarizing your IVA’s progress and any changes in your financial situation. If your income increases without a corresponding rise in expenses, you may need to increase your IVA contributions. However, your supervisor will ensure these increases are affordable and allow you to maintain a reasonable standard of living. Conversely, if your income drops or expenses rise, making it difficult to meet your contributions, they will work with you to find a solution, potentially including negotiating reduced payments with your creditors. Don’t hesitate to contact your IVA team if you have any questions or concerns about your income or expenses and their impact on your contributions.

Once your Trust Deed concludes, you’ll receive a completion report from your Trustee. They will update the official Insolvency Register and your credit file to reflect the successful completion of your Trust Deed. The record should disappear from your credit report within 2 years. Your creditors will also receive a final report detailing the total amount they received after Trust Deed costs.

An IVA will be registered on your credit record for its duration and up to an additional year after it’s completed. The impact on your credit rating depends on your rating before the IVA.

Your IVA is private and won’t affect those you live with unless you have someone guaranteeing a loan for you. If you default on the IVA payments, the lender may contact the guarantor for repayment.

Only your insolvency practitioner, their team, and your creditors will know about your IVA. The record will be on a public Insolvency Register, but it won’t show the specific terms of your agreement

A Trust Deed is a formal agreement between you and your creditors to repay a portion of your debts over a fixed period, typically four years. During this time, interest and charges on your unsecured debts will freeze, and any remaining debt at the end is written off. Your monthly payments are based on your affordability after resonable living costs.

There’s no limit to the amount of debt a Trust Deed can write off. However, your creditors will vote on your proposal. If the amount you’re proposing to write off seems unreasonable, they may reject it. We can provide guidance on a suitable offer for your creditors. It’s important the offer remains affordable for you after considering your living expenses.

A Trust Deed protects your home you will never be forced to sell your property in a Trust Deed. In some situations, a remortgage to release some equity maybe loooked into if available.

Yes, Trust Deed's were originally designed to be an alternative for self-employed individuals facing financial difficulties. Many non-self-employed people also find Trust Deed's a suitable solution. We are experienced in helping self-employed business owners benefit from Trust Deed's. We can prepare proposals that explain how you expect to generate future income for your Trust Deed contributions.

Yes, some people enter a Trust Deed while unemployed. You should consider if other debt solutions might be more suitable for your circumstances, such as a Debt Arrangement Scheme or a Minimal Asset Process. If you can afford Trust Deed contributions and your proposed budget is realistic, there’s no reason you can’t propose a Trust Deed to your creditors.

There are two fees associated with an Trust Deed:

Fixed Administration Fee: Typically a fixed fee of £2,500 (subject to variation based on creditors), covering the initial stages of the Trust Deed process, including proposal preparation and the 5-week objection period.

Permanent Trustee Fee: Calculated as a percentage (usually 20%, subject to variation) of total assets and contributions realized. This covers supervision activities.

The important point to know the fees and costs of a Trust Deed is that the costs are deducted from your agreed affordable monthly payments. In the example below, you will see that no fees or costs will be payable by you in addition to your agreed monthly Trust Deedcontributions.

Trust Deed fees and costs example

48 payments of £150 = £7,200

Less

Fixed Administration Fee: £2,500

Permanent Trustee Fee: £940

Disbursement costs: £1,000

Balance payable to creditors: £2,760

Creditors’ claims: £10,000

% distribution to creditors: 27.6%

Yes, changes in your circumstances might allow for an early completion of your Trust Deed. For example, if you receive financial help from someone close to you, you could propose a lump sum payment to settle your debts instead of continuing monthly payments. This can be attractive to creditors as they receive their money sooner, even if it’s a slightly lower total amount than originally anticipated. Discuss any early completion proposals with your trustee. They can advise you on the likelihood of creditor acceptance and will help you present a fair and reasonable offer for their approval.

Your Trust Deed can include Decrees/CCJs, even if creditors have taken enforcement actions against you.

A Trust Deed is a legally binding agreement, so it cannot be canceled at will. If you are unable to pay the installments which your creditors find acceptable, your Trust Deed may fail – which could lead to your sequestration and the loss of your belongings. If you would like to cancel your trust deed, you will need to get the consent of your insolvency practitioner. They can contact your creditors and let them know that they intend to end the trust deed and are seeking their discharge. Canceling a trust deed would have the impact of returning you to the starting point. At that point, you could set up an installment plan/Debt Arrangement Scheme (DAS) as that may be a better option for you.

Yes, you can change your car during an Trust Deed. Creditors understand the need for a reliable car for work. You just need your Trustee consent for any new financing to ensure it’s affordable and reasonable.

To qualify for an IVA, you typically need to owe at least £5,000 to at least two creditors and be able to afford at least £100 per month towards your debts after living expenses. There is no upper limit on the amount of debt you can owe.

Your current lender will usually offer you a new mortgage deal once your deal comes to an end. a new Mortgage requires new credit, so you’ll need your trustee's consent. Finding a lender willing to offer a mortgage before your Trust Deedends might be difficult. If you do find one, your trustee will likely approve as long as you can still afford your Trust Deedcontributions.

The Trust Deed setup process typically takes a couple of days. Once the trust deed has been set up there is a period of 5 weeks from publication of the Notice, if the Trustee has not received written objections from a majority in number of the creditors or any creditor(s) owed more than one third in value of the total debt, then the Trust Deed will be registered as protected.

We will assess your income and expenses to determine a realistic monthly Trust Deed payment that allows you to cover your living expenses. Creditors don’t expect you to live in poverty. Reasonable expenses like sports and hobbies are acceptable. If you earn extra income, you may need contribute a portion to your Trust Deed while keeping at least 50% for yourself.

We have built strong relationships with many creditors and their agents, allowing us to advise you on how they might react to your Trust Deed. We’ll only recommend proceeding if we’re confident your creditors will approve it.

You can change jobs freely during your Trust Deed. If your income increases, you might need to inform your trustee as it could affect your contributions during the annual review. Creditors might allow you to increase contributions by up to 50% of your net income increase, but you can deduct additional living expenses or work-related costs.

Yes, your Trust Deed is a confidential agreement between you and your creditors. While a record of your Trust Deed will be registered on the AIB Insolvency Register, only the details of your name will be publicly available. The terms of your Trust Deed with your creditors remain confidential.

if at any point during a PTD, you feel like you may struggle to pay your income contribution, you must contact us immediately. It may be possible to arrange a change in payment amount or a payment break due to extenuating circumstances, assuming these could be evidenced.

unexpected events can happen, and you may need to variations to keep the Trust Deed going. If something significant happens, like long-term illness, inform your trustee to discuss how to modify the Trust Deed.In some instances, trust deeds expressly permit trustees to vary the terms of the trust. In this case, trustees can rely on the relevant provision to effect the necessary amendments, subject to any restrictions or conditions attached. This is usually the simplest and quickest way in which to effect a variation.

Most unsecured debts can be included in your Trust Deed, except for things like court fines/student loans/criminal debts. Secured debts like mortgages and car loans typically aren’t included. You can include debts owed to the HMRC for unpaid taxes and certain bills. we will advise you on whether including certain debts is realistic for your Trust Deeds Protection.

If you’re having trouble making your agreed monthly Trust Deed payment, contact us immediately to let us know. The sooner you let us know about this, the sooner we’ll be able to discuss a solution with you. If you miss a payment without giving us prior notice, you will be in breach of your Trust Deed arrangement. We will contact you urgently to chase the payment – and to ask why you have missed it – so that we can keep your creditors informed of the situation. This is important because any breaches in the arrangement could ultimately lead to the failure of your Trust Deed.

Each year, your trustee will review your income and expenses. They will send a report to your creditors summarizing your Trust Deed’s progress and any changes in your financial situation. If your income increases without a corresponding rise in expenses, you may need to increase your Trust Deed contributions. However, your trustee will ensure these increases are affordable and allow you to maintain a reasonable standard of living. Conversely, if your income drops or expenses rise, making it difficult to meet your contributions, they will work with you to find a solution, potentially including negotiating reduced payments with your creditors. Don’t hesitate to contact your trustee if you have any questions or concerns about your income or expenses and their impact on your contributions.

A Trust Deed will be registered on your credit record for its duration and up to an additional 2 years after it’s completed. The impact on your credit rating depends on your rating before the Trust Deed.

Your Trust Deed is private and won’t affect those you live with unless you have someone guaranteeing a loan for you. If you default on the Trust Deed payments, the lender may contact the guarantor for repayment.

Only your insolvency practitioner, their team, and your creditors will know about your Trust Deed. The record will be on the Edinburgh Gazette & a public register, but it won’t show the specific terms of your agreement