Not every debt can be addressed in an IVA.
An IVA typically covers multiple creditors. We, therefore, suggest that you seek advice from an independent financial advisor if you decide before you contact any insolvency practitioners.
Mortgages, secured loans and rent
Secured loans are debts that are taken against your home. This means that if you cannot pay the debt, creditors who hold secured loans can start court proceedings to repossess your home. You can include secured loans, mortgage or rent arrears in an IVA. However, your creditors are highly unlikely to approve an application for an IVA because they already have the repossession option.
Debts you can include
♦ Catalogues;
♦ Personal loans;
♦ Overdrafts;
♦ Credit cards;
♦ Gas and electric arrears;
♦ Council Tax arrears;
♦ Water arrears;
♦ Payday loans;
♦ Store cards;
♦ Income tax and national insurance arrears;
♦ Tax credit or benefit overpayments;
♦ Debts to family and friends; and
♦ Other outstanding bills, for example, solicitor’s costs, invoices for building work and vets bills.
Debts you cannot include
♦ These would include:
♦ Maintenance arrears that a court has ordered;
♦ Child support arrears;
♦ Student loans;
♦ Magistrates’ court fines;
♦ Social Fund loans; and
♦ TV licence arrears.
Joint debts
You might have some ‘joint debts’ owned by you and another person, such as a partner.
All IVAs are individual, but if multiple individuals — such as a couple — have an IVA, they are called ‘interlocking’ IVAs. Again, your insolvency practitioner will be able to advise you about this.
How we can help
Lestons are not registered financial advisors and can therefore not give specific advice, we can however assist generally with the negotiation of an existing situation, or provide you with access to a host of independent mortgage brokers and professional financial and tax advisors who can give you great advice, we do not charge for this service itself but do charge for our time in creating the proposal and briefing documents. To create a case so that we can liaise with you over your needs just click the link at the top of this page, our staff are ready and eager to assist you in any way possible. Remember all debt solutions are temporary – there is always light at the end of the tunnel.
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