If you have decided to apply for an Individual Voluntary Arrangement (IVA) our application service is ideal. First of all we will ensure that you fully understand the implications of starting an IVA and that it is the right debt solution for you.
Then we will provide you with help and support throughout your application including assisting you with your Statement of Affairs and introducing you to the appropriate Insolvency Practitioner. The key features of our service are designed to make your application run as smoothly as possible.
Want help to start an IVA? Give us a call (0800 088 7376) or complete the form below to speak to one of our experts
1 – Analysis of your Financial Situation and the different Debt Solutions
We review your financial situation including your Income, Living Expenses, Major Assets and Creditors. We estimate your disposable income and review each of the debt solutions available to you discussing their merits and drawbacks.
If you want to apply for an IVA we will ask you to confirm your financial details, sign our Letter of Engagement and agree to our IVA Service Terms & Conditions.
2 – Draft your IVA Proposal Document
Note: Wilmott Turner does not employ an inhouse Insolvency Practitioner (IP). We will introduce you to one of our preferred IP’s who will manage your IVA application from this point.
With your agreement we will forward your details to our preferred IP. After speaking to you on the telephone they will send you a copy of their terms of engagement to sign and ask you to provide documentation to support your financial details. Once these are returned if the IP still considers it appropriate they will produce a draft IVA proposal on your behalf. You will be asked to sign this proposal and return it.
Note: Insolvency Practitioners do not have to be regulated by the Financial Conduct Authority (although they may be so). They are regulated by the relevant authorising body such as the Insolvency Practitioner’s Association (IPA). Further details are available on request.
3 – Creditors Meeting
Each of your creditors is sent a copy of your proposal. They will be given time to review it and then a creditor’s meeting is held which is chaired by the IP. At the meeting your creditors may accept your proposal, accept with modifications (which you can then consider) or reject it. Your IVA will be accepted if 75% in value of the creditors who choose to vote agree to it. You will not normally be required to attend the meeting although you can do so if you wish.
4 – IVA payments begin
Once your IVA is accepted the IP will normally be appointed as your Supervisor. The Arrangement will be registered in the Insolvency Register and your payments will begin. The Supervisor will monitor your payments, supervise the disposal of any assets and fulfil any other requirements as agreed in the Arrangement.
5 – The completion of your IVA
Once you have met all the requirements of your IVA including making all necessary monthly payments and releasing equity from your property where appropriate it will come to an end. Any outstanding amounts of all included debts will be written off. You will be issued with a Certificate of Due Completion and your name will be taken off the Insolvency Register.
Wilmott Turner Fees
Wilmott Turner will not charge you for any of the advice we provide or for any work we undertake in assisting you in producing your Statement of Affairs or the drafting of your IVA proposal.
Insolvency Practitioner Fees
Once your IVA is accepted the Insolvency Practitioner will then charge two types of fees: their Nominee Fee and their Supervisor’s fee. You do not have to pay these directly. They are taken from the agreed payments that you make into your IVA. A description of these fees is given below.
Insolvency Practitioner Nominee Fee
The Insolvency Practitioner who presents your IVA proposal to your creditors is called the your Nominee. The work of the Nominee includes:
– An initial meeting (normally on the telephone but could be face to face) to fully understand the details of your income, expenditure, assets and income
– Gathering supporting documentation and preparing your IVA proposal document
– Liaising with your creditors if necessary
– Convening the meeting of your creditors, chairing the meeting and again liaising with creditors on any queries or modifications they request
The Nominee Fee charged for this work is normally £1000 although this could be more in certain circumstances
Note: Once your IVA is accepted the Insolvency Practitioner will pay WTFS an amount equivalent to 75% of the agreed Nominee Fee (£750) for our assistance with drafting your IVA proposal. This cost is paid by the Insolvency Practitioner and is not an additional cost to you.
Insolvency Practitioner Supervisor Fees
The Insolvency Practitioner who manages your IVA for its duration is called your Supervisor. The work of the Supervisor includes:
– Monitoring the contributions you make into your IVA
– Making payments to your creditors as required (monthly, quarterly or annually)
– Generally monitoring the progress of your IVA in accordance with the proposals
– Carrying out an annual review of your case (or at intervals required by your creditors)
– Working with you to manage any changes in your financial circumstances
The Supervisor Fees charged for this work are normally based on 15% of the amount that you pay into your IVA after the Nominee fee and initial costs have been deducted.
Before making your final decision to start and IVA it is important that you remember some key advice about how an IVA is likely to affect you:
Government Advice about IVAs
Before making the final decision to apply for an IVA you should read the Insolvency Service’s guide to personal debt solutions which you may also find useful: “In Debt – Dealing with your creditors”. It is also recommended that you read the one page document produced by The Money Advice Service (MAS) entitled “Dealing with debt – 5 things you should know”.
IVA payments last for 5-6 years
You will need to make monthly payments towards your debts based on your disposable income for 5-6 years (unless you settle early with a cash lump sum). During this time all interest and additional charges are frozen. After your payments are completed any debt included in the Arrangement that remains unpaid will be written off.
Not all of your Debts are included in an IVA
Only unsecured debts which are highlighted in your IVA will be included. Any unsecured debts which you leave out either by choice or mistake will remain outstanding. Secured debts such as your Mortgage are not included. If possible you should continue to pay any CCJ debts until your IVA is accepted.
Ongoing Payment of your Priority Debts
You must maintain your monthly payments towards your Priority Debts even after you start an IVA. These include secured debts such as your mortgage. If you do not pay secured debts you will risk the property or other asset that the debt is secured against being repossessed. You must also maintain payments towards your other priority debts such as your Rent, Taxes, Fines, Child Support Payments and Utility Bills.
Creditor Action if you stop paying your Debts
After you start the IVA application process you may decide to stop paying the creditor’s you plan to include in the Arrangement. If you do this they may start action to recover the debts owed. This may involve additional costs and interest being added to your account balances.
Your Credit Rating will be negatively affected for 6 years
An IVA will have a significant negative impact on your credit rating. A record of the Arrangement will remain on your credit file for 6 years. During this time and possibly for some time afterwards your ability to get new credit, a new mortgage or other financial services will be seriously affected.
Your Details will be included in a Public Register
Once you start an IVA your name, date of birth and address will be added to the Insolvency Register. This register is publically accessible and via the internet. As such anyone could discover that you are in an IVA if they search the register for your name. Once your IVA is completed your name and details will be taken off the register.
Your Living Expenditure will be restricted
During your IVA you will be required to live within a restricted living expenses budget. You will have to pay all of your surplus income into the Arrangement. If your income increases your payments may also increase for the remainder of your IVA.
Home Equity may have to be released
If you are a home owner you will be obliged to release equity from your property in the last year of your IVA if this is available and possible by either remortgaging or taking a secured loan. Where equity is available but you are unable to obtain a remortgage or secured loan then it is likely that your payments will be extended for 12 months.
Your IVA may not be accepted
The lenders you include in your IVA are not obliged to accept your proposal. It will only be accepted if 75% in value of the creditors who actually vote on the proposal agree to it. If your IVA is not agreed you will remain liable for the payment of your debts.
What if you do not maintain your IVA payments?
If you start an IVA but do not keep up your agreed payments then it is likely to fail unless a revised payment schedule can be agreed with your creditors. If your IVA fails it is possible that you will lose all the money that you paid into it and your debts will remain outstanding. It is also possible that your creditors will petition for your Bankruptcy.
From the date that you provide all of your required documents to the Insolvency Practitioner it should take between 4-6 weeks for a meeting of your creditors to be held and your IVA to be accepted if your creditors are in agreement. These timescales could be extended depending on the time it takes for you to review your draft proposal and return a signed copy to the IP.
Once accepted your IVA will normally last for 5-6 years unless you settle it early with a cash lump sum. During this time it will be supervised by the appointed Insolvency Practitioner.
We will continue to provide support and advice to you during your IVA application. If your proposal is rejected by your creditors we will work with you to provide an alternative solution although fees may be charged for this depending on the solution.
If you engage with the third party Insolvency practitioner introduced to you by us you may cancel your agreement with them at any time up until your IVA proposal has been accepted by your creditors at the Creditors Meeting by notifying them in writing.
Fees payable on cancellation
If you chose to cancel before your IVA is accepted at the Creditors Meeting you will be charged nothing unless this has been specifically agreed between you and the Insolvency practitioner.
Note: After your IVA is accepted you will only be able to cancel your agreement by failing to make your agreed payments and thus allowing the Arrangement fail. If you do this then it is possible that any payments you have already made into your IVA will be taken by the Insolvency Practitioner to pay towards their Nominee Fee and none of the money you have paid will be paid towards your outstanding debts or returned to you.
We pride ourselves on the highest level of customer service and professional advice. However if you should wish to complain about the service or advice you have received from us you can do so.
Complaints may be made in person, by telephone, by e-mail, or by letter. Your complaint will be acknowledged by letter within 5 business days. We will endeavour to complete our investigation and resolve your complaint as quickly as possible and in any event within 8 weeks of receiving the initial complaint.
You can view a full copy of our complaints policy here: Complaints Policy
A copy can also be requested by contacting the Complaint Officer: e-mail: firstname.lastname@example.org or by calling 01752 862210
What if you are not satisfied?
If you are not satisfied after receiving the final response from us then you have the right to make a complaint to the Financial Ombudsman Service. You must do this within 6 months of the date of the Final Response letter.
Wilmott Turner will co-operate fully with the Ombudsman in resolving any complaints made against it and agrees to be bound by any awards made by the Ombudsman. We undertake to pay promptly any fees levied by the Ombudsman.
You can contact the Financial Ombudsman in the following ways:
Post: Financial Ombudsman Service, Exchange Tower, London. E14 9SR
Phone: Consumer Helpline (Mon-Fri 8am to 8pm & Sat 9am to 1pm
0800 023 4 567
0300 123 9 123 (Charged as per your standard mobile tariff)