Another question that comes up often at the moment by people considering an IVA is “How quickly can I get my IVA started?”
This page will clear this question up for you & give you a good understanding of this (read on for more information).
IVA’s generally take around six weeks to setup HOWEVER the thing to remember is the insolvency practitioner can apply to have the legal injunction placed on your creditors’ to halt creditor hassle even at the earlier stages, so if this is a primary concern for you when considering an IVA then this is worth remembering.
In most cases IVA’s can go through in six weeks however some can be completed faster (within a month).
The time it takes for the IVA to begin is dependent on a few different things:
1) How quickly you take action to get in touch with the advisers’ (we offer a free debt assessment for people reaching out to us struggling with their debts).
2) How quickly the creditors’ agree to the terms of the IVA (this is important to the completion and commencement of the IVA and the documentation to get the IVA underway).
3) Whether or not it is clear to all parties that you qualify for the IVA (this can generally be ascertained during your initial debt assessment).
So 4-6 weeks would be the usual timeframe for the setting up of an IVA.
Things that can speed up your IVA Application
Making sure that you have a clear idea of your assets and liabilities ready for your initial free debt assessment (although not essential this will make things easier and help to make the process faster).
Explaining to your insolvency practitioner you are being chased by creditors (potentially bailiffs) and therefore it’s an exceptionally urgent set of circumstances.
Being as honest & co-operative as possible when asked questions and being available for comment if further information is provided.
(Outside of your control) a fast agreement from your creditors’ (whom are often surprisingly fast at agreeing to an IVA, especially when it becomes apparent that an IVA is the only option for them to recover debt repayments from yourself.
Things that can slow down an IVA
Creditors’ in dispute of the terms of the IVA itself (which can usually be worked with and the terms adjusted to make things more agreeable).
The debtor (in this case: yourself) not being available to provide details of debts or not being available for the initial debt assessment and consultation.
General uncommon administrative “hiccups” or other minor issues holding up the process (uncommon).
All in all an individual voluntary arrangement can be a major step to becoming debt free in the long term and there are also a range of long and shorter term benefits for you, the debtor (however it is extremely important to show commitment to the IVA by keeping up with repayments and keeping your insolvency practitioner updated on personal circumstances).
Gets’ creditors to stop chasing the debts (provided you stick to the terms of the IVA) by means of a legal injunction.
Writes’ off large portions of debt once the IVA is completed (typically after 60 months of being in the IVA) (more than 75%-85% of total debt has been written off in many cases).
Consolidates’ monthly repayments of debt making the monthly repayment more manageable for you, the debtor so you can experience a more normal standard of living instead of labouring under unsustainable monthly repayments.
If you are interest in an IVA, feel free to reach out to us for a free debt assessment or find out more at this IVA page for more information.