IVAs (Individual Voluntary Arrangements) were introduced by the government as part of the Insolvency Act 1986, and are a legally binding contract between you and your creditors.
You pay just one affordable monthly payment to your creditors over a period of 60 months. Once you have completed your IVA any outstanding debt is written off as part of the agreement.
An IVA can only include your unsecured debts. Unsecured debts include credit cards, store cards and personal loans. An IVA cannot deal with any debts that are secured against your assets, such as your home. If you fail to meet your repayment obligations for these, then your creditors can take various actions including the forced sale of the asset.
As an IVA is both legally and financially complex the time that it takes to set up can vary.
If you act promptly with sending us the required details then we should be able to process your IVA in about four to six weeks.
If you find yourself in a situation where you cannot afford your monthly IVA payment then it is important that you contact your Insolvency Practitioner immediately. They will be able to advise you on your best option.
If you miss any payments then your creditors can start bankruptcy proceedings against you.
For your IVA to be accepted, your proposal needs 75% of the creditors (by value of debt owed) to vote in favour for it to be accepted.
If your get refused by a creditor/s who you owe more than 25% of your debt to, then your IVA application will automatically fail.
As long as you have completed your IVA in accordance to the terms of your proposal, then your creditors will have no further claim against you and your unpaid debts will be written off.
The main benefit of an IVA over Bankruptcy is that you do not have to sell your home. Under an IVA, your mortgage, and any other secured payments, will be prioritised, which means we will ensure that you repay them before your IVA contributions are taken. However, you may have to release part of the equity in your home.
Unlike bankruptcy, your IVA will not be published in the local papers so you should not suffer from adverse publicity.
Yes, you can still keep your bank account, but if you owe money to that bank then All Clear Finance will advise that you close it and open up a new ‘simple’ bank account (without a cheque guarantee card or overdraft facility) with a bank that you do NOT owe money to.
Yes, entering into an IVA will damage your credit rating, which will affect your ability to borrow more debt. During the term of your IVA you will not be able to take out any further credit. But the last thing you should be thinking about doing is borrowing more money whilst you are on your IVA.
There will be reference to your IVA on your credit file which will remain there for six years, which is one more year than the length of your IVA.
As soon as your IVA proposal is prepared then the court will be notified, which is usually sufficient to stop proceedings. If this does not happen then your advisor will write to the court and the creditors.
No, as an IVA is as legal process it means that once it has been set up it cannot be cancelled.
Yes. This is a complex matter so we will not discuss it in detail here. Self employed people can undertake IVAs and small companies can do CVAs. If this applies to you then we please contact our All Clear Finance advisors on 0808 131 0038, who will discuss this in detail with you.
Yes an IVA can include a CCJ (County Court Judgement). This will override your previous judgement, so anything that was being paid into the CCJ will not be paid into the IVA.
One of the key benefits of an IVA over Bankruptcy is that details will not be published in your local press. Creditors will obviously be aware of your situation and your employer if it affects your job position, but it is up to you who you tell about the IVA agreement.
For the most part your Debt Management Plan will be able to include most of your existing creditors. However there are some debts which cannot be included. These are known as 'priority debts' and include council tax and mortgage repayments.
A Debt Management Plan is not a legal procedure, so All Clear Finance cannot offer a guarantee that your creditors will accept. But if the agreement is beneficial to both parties then it is likely to be accepted.
The amount that you will pay for your Debt Management Plan is dependant on your financial circumstances. All Clear Finance will organise a payment plan for you which has been based on your earnings and expenditure.
We will proportion your monthly payment based on how much each creditor is owed. We will send you a statement which shows how much each creditor will be issued, and from then on you will receive a quarterly statement showing all the transactions that have been made from All Clear Finance.
You will have to continue to make payments to your Debt Management Plan until all your debts have been repaid in full.
A Debt Management Plan is not the same as a loan. It is a way of consolidating your repayments into one affordable payment without further borrowing.
You will be breaking the initial Terms and Conditions with your creditors if you choose to go onto a Debt Management Plan. This will have an adverse affect on your credit record.
But it is important to remember that if you have already been missing payments then your credit rating will already be poor.
A Debt Management Plan is a flexible agreement, so we will be able to alter you plan if your circumstances change.
You will be paying your debts over a much longer period. It is important to remember that a debt management plan will alleviate your monthly payments so that you do not have to struggle.
No, as we are not lending you any money we will not need to credit check you.
Your first month’s payment will go towards the implementation costs of setting up the programme and negotiating with each of your creditors. We will also have an ongoing administration cost which is included as part of your monthly payment.
If you cannot pay your monthly amount then it is likely that your creditors will no longer wish to continue to support you on your Debt Management Plan.
If you find that you are struggling to make your payments then please contact All Clear Finance as soon as possible and we will be able to help you.
Yes, you will be able to get a Debt Management Plan if you have any existing CCJ’s. Contact us today on 0808 131 0038 for more information.
A Trust Deed provides the debtor with a more practical alternative to Bankruptcy. It is a legally binding arrangement between you and you creditors, where you pay back a set amount over a fixed term, commonly over three years. The debtor only pays back what they can realistically afford and any unpaid debt is written off on completion of the Trust Deed.
A Trust Deed is Scottish legislation only, and the rest of the UK is serviced by IVA.
In principle, a Trust Deed is the Scottish equivalent of an IVA.
A Trust Deed will cover your unsecured debts, but there will be those secured debts that cannot be written off such as mortgages, secured loans or student loans.
A Trust Deed cannot cover your Secured Debt. Secured debt means that the debt is secured against an asset, typically your home. If you fail to keep up on repayments then your assets will be at risk. Unsecured loans are not held against any items.
It is dependant on the individual circumstances, but on average it should take about 6 weeks.
No, your Trust Deed account must be handled by a qualified Insolvency Practitioner.
Yes, a Trust Deed will affect your credit rating as you are breaking the your terms of credit. However if you are making monthly payments that are lower than the contracted amount or have missed payments then your credit rating is already damaged.
No, it is a legal process that is agreed with your current creditors to repay your debts. You will not make any further borrowings.
When a Trust Deed becomes Protected, it basically means that no further action will be taken on your account by the creditors.
After you have completed your Trust Deed, any remaining debt will be written off and your creditors will have no further claim against you.
During the term of your Trust Deed you will not be able to get any credit in excess of £250 and you must notify the lender about your Trust Deed.
From the creditors point of view, a Trust Deed offers them a better outcome than Bankruptcy. As they will be able to reclaim part of the debt in part and they can avoid long and expensive court proceedings.
A secured loan is otherwise know as a homeowner loan. It is a loan secured against your property, which means that your home is at risk if you fail to make the required repayments. But a Secured Loan can often offer you a much more favourable interest rate.
Like any financial commitment, there are Pros and Cons which are attached, for more detailed information please speak to our All Clear Finance advisors on 0808 131 0038.
Secured Loan Pros:
Secured Loan Cons:
All Clear Finance have a strong panel of lenders, and our specialist loan advisors will do their best to find you a loan, no matter what you credit history. However, each case is unique, so the only way to see if you qualify is to contact us today.
The main difference between these loan types is that the secured loan is secured against something of value, usually your home. Whereas an unsecured loan is not secured against anything but usually carries a higher interest rate.
The amount that you can borrow for your secured loan depends on your personal circumstances, such as your house value and income. Contact All Clear Finance today and we will go through your finances and work out how much you can borrow.
The best way to start your secured loan application is to get in touch with All Clear Finance, our advisors will look at your options and will try and get you accepted for a secured loan which suits your circumstances.
A remortgage allows you to change your existing mortgage lender to another provider. This new mortgage will not require you to move from your existing home and it could save you money on your monthly payments.
All Clear Finance believe in being honest with our clients, and to find our all the benefits and potential implications of a remortgage, you need to contact us today on 0808 131 0038.
Remortgage Pros:
Remortgage Cons:
Yes it is possible for you to remortgage your home, but each application is individual so it is best to contact us so we can start the remortgage process today. Call our All Clear Finance advisors on 0808 131 0038.
All Clear Finance will not discriminate because you have been turned down for a remortgage in the past. We try and help everyone, no matter what your financial history. For free expert advice and help getting a remortgage, please call us free on 0808 131 0038.
There are a number of reasons why our clients remortgage. For example, they can take advantage of low interest rates, as well as a chance to consolidate your existing debt.
The cost of your remortgage is dependant on your current mortgage. For example, there might be a charge for ending your mortgage plan early. There will also be charges to set up a new remortgage.
You may want to use the money raised through your remortgage to consolidate any existing debt. We also won't place any restrictions on what you do with the extra money raised. For help and advice call All Clear Finance direct on 0808 131 0038.