A single, affordable payment
Pay what you can each week/month.
Debts significantly reduced
Repay part of your debts to clear them in full.
No more interest nor charges added.
Full legal protection
All collection activity and legal action stopped.
IVA eligibility check
How does an IVA work?
An IVA (Individual Voluntary Arrangement) is a legal agreement between you and those you owe money (your creditors).
You agree to pay off a percentage of your debt over a given period of time, by means of affordable repayments (normally 60 months).
If you owe more than £8,000, are struggling with payments but can afford at least £80 per month - an IVA may be the right debt solution for you.
Applying For An IVA
When you contact us we will chat about your current situation, including an assessment of your income, outgoings and your debts. This will tell us if an IVA is a good option for you.
Should an IVA be suitable - the next step is to draw up a formal proposal for consideration by your creditors.
If the proposal is approved by 75% of the creditors by value of debt the IVA is accepted and all creditors are bound by its terms. All debts are frozen so no more interest or changes can be added.
Being In An IVA
Creditors must not chase you for payments for any of the included debts. So, no more letters, phones calls nor threats of legal action.
Provided you maintain payments - unpaid debt is written off at the end of the IVA, which typically lasts 60 months.
Your expenditure is expected to keep within reasonable guidelines - but you won't be asked to live in poverty.
Debt Includable in an IVA
Most debts can be included in an IVA and be subject to negotiated repayment.
Loans & Overdrafts
Store & Credit cards
Benefits over payments
HMRC & Council tax arrears
Debts with a Court Judgement
Rent, Gas and Electricity arrears
Catalogues & Buy now – pay later agreements
For other debts contact Debt Guardians for clarification
Certain debts cannot be included in an IVA such as; criminal court fines; debts obtained by fraud; child support arrears and most student loans.
Once your IVA has been accepted, you could benefit from:
Repayments to creditors are based on what you can afford - not how much you owe.
Once you have made the agreed contributions any remaining money owed is written off.
A sense of control
An IVA allows you to regain control of your debts and work towards debt freedom
Debts cannot increase further
Frozen interest and charges so that your debts do not increase.
Creditors cannot pursue you for their debt or take legal action.
Knowing when you'll be debt free
A fixed agreement usually lasting 5 years, after which any remaining unsecured debts will be written off.
Home is protected
An IVA can help safeguard your property and ensure future affordability even after the IVA.
You'll be less stressed knowing IVA will stop contact from your creditors and your payment are affordable
Avoidance of bankruptcy
An IVA enables you to continue to trade if you are self-employed or have a trading business.
Better able to afford other financial commitments
An IVA can catch unknown debts such as unpaid tax or overpaid tax credits.
Advice You Can Trust
Read what people are saying about Debt Guardians
Initial debt and payment levels for a typical IVA
Without an IVA
In this example they applicant currently pays £500/m towards debts, which are:-
|Other includable debts||£8,000|
|HMRC tax arrears||£5,000|
|Total Current Debts||£29,500|
|Further interest & charges while repaying these over several years could be say as…||£6,000+|
|Payments To Be Debt Free*||£35,500+|
With an IVA
If it is determined the applicant can afford £160/m towards debts, then:-
|IVA payments||£160 * 60 months|
|Payments To Clear Debts||£9,600|
*Payment levels depend on affordability of the individual applicant and are subject to creditor acceptance.