IVA Debt Consolidation FAQ – Cardiff, Newport & South Wales

How much will I be asked to pay into an IVA each month?

Many people find that their monthly debt payments leave them with insufficient funds to meet everyday living costs. When you enter an IVA you stop making payments to the banks and lenders whose debts will be covered by the IVA. Instead, you make one monthly payment into the IVA. You will only be required to pay in to the IVA a sum you can afford to pay after meeting all of yours, and your family’s, living expenses.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

Why would the banks and lenders I owe money to agree to an IVA when it may repay only part of my debts?

An IVA is a way for people with debts to reach a sensible agreement to pay what they can afford, and no more. The government created IVAs to help people facing debt problems to avoid bankruptcy and to settle the debts owed, even if it does mean only paying off part of the debt.

Before you enter an IVA we will talk through your finances with you. Your creditors will receive our Insolvency Practitioner’s report advising them of the monies they would receive if you were to enter bankruptcy, compared to those they would receive in an IVA. In most bankruptcy cases the creditors receive only a small proportion of the money owed to them. An IVA is a cheaper process and will provide them with a better return, even though this may still only repay part of the money owed.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

How much does the IVA cost me in fees?

We receive our fees from the money paid in to the IVA. These are the funds which would otherwise have been sent on to the banks and lenders you owe money to. The banks and lenders allow us to be paid from these funds because they recognise that the IVA will is designed to keep you out of bankruptcy, and that bankruptcy would provide them with a far lower return. It is the creditors who set the level of fees an Insolvency Practitioner receives for arranging and supervising the IVA – which is why an IVA costs the same whether you receive a personal service from a local practitioner like Whiteoak Morris or a ‘call centre’ experience from a large provider.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

Why would the banks and lenders I owe money to agree to an IVA when it may repay only part of my debts?

One of the advantages of an IVA is that it allows you to control what happens to your property. In bankruptcy, the trustee may force the sale of the property to obtain 100% of your equity. An IVA can allow you to keep your home. In an IVA you may be required to increase your mortgage to release funds into the IVA. However, the level of the mortgage required will only be for 85% of the value of your equity – leaving you with the 15% the trustee in bankruptcy would have taken.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

How much will I have to pay Whiteoak Morris if my creditors do not accept my IVA proposal?

Nothing. You will not be charged a penny if your IVA is not agreed by your creditors.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

Will there be a ‘hard sell’ to sign me up to an IVA?

Absolutely not. Whiteoak Morris is a professional firm headed by a licensed Insolvency Practitioner. The work we do is regulated by the Association of Chartered Certified Accountants (ACCA). We are required to provide you with an honest comparison of all of your options. We pride ourselves on providing free and confidential advice which allows people to make an informed choice. There is no hard sell – just straightforward, honest, professional advice.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

Why would the banks and lenders I owe money to agree to an IVA when it may repay only part of my debts?

If the change in your income is small we will inform your lenders that your contributions will be slightly lower going forward. If your income stops suddenly we can agree a break in the payments to allow you to find another income. If the change in income is going to be more significant, we will need to go back to creditors to agree reduced contributions. If the creditors do not wish to agree to lower contributions, then the IVA may fail.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

Why choose Whiteoak Morris for my IVA?

We are a professional firm based in South Wales offering a personal service. Rather than calling one of the larger providers and having to deal with a ‘call centre’ you will be provided with a personal service from an expert. Our licensed Insolvency Practitioner will be personally involved in your IVA from the start and throughout. We have offices in Cardiff and Newport and will meet you to discuss the options in person. Our fees are in line with all other IVA providers, large and small. In fact, the level of fees is dictated by the creditors and are set at industry standard levels – regardless of whether your IVA provider is a large ‘call centre’ provider or a local professional firm like Whiteoak Morris.

You gain a personal service from a local professional firm – while the costs remain the same as the large ‘call centre’ providers.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

Will an IVA affect my credit rating?

Yes. The IVA will be recorded on your credit file for six years from the date it begins. However, you should also consider the following:

  • If you are in financial difficulty and have missed payments your credit score may be low already.

  • Even a Debt Management Plan will be noted on your credit file by some lenders. Bankruptcy is formally flagged on your credit file for six years.

  • Your IVA is designed to allow you to meet all of your household outgoings and will only ask you to contribute from the surplus. This means you should not find yourself in a position where you need to borrow additional money to make ends meet – your IVA has been calculated to prevent this happening.

  • An IVA is a way to clear your debts in full. At the end of the IVA you will be debt free and can rebuild your credit rating.

Contact us on 02920 611047 (Cardiff) or 01633 927002 (Newport) for free professional debt advice – we will be happy to answer all of your queries.

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