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Individual Voluntary Arrangement (IVA)

Benefits of an IVA

Do I qualify for an IVA?

Until an advisor has spoken to you in detail we just don’t know yet. Request a call back and we’ll answer all your questions.

What will Pathfinder Financial Services do?

If the IVA is the best solution for you, we will make a proposal on your behalf to your creditors and ask them to vote whether or not to accept the proposal. Over the last 12 months’ more than 95% of our proposals to creditors were accepted. After your IVA is approved we will write to all your creditors and let them know your IVA is approved

How much will I pay?

We look at all your income and reasonable outgoings and arrive at a fair offer to make to your creditors. The amount you will pay is not determined by your level of debt, it is based on what you can sensibly afford to pay. It doesn’t matter whether you are employed, self-employed or retired; we can even make offers which reflect where someone’s income fluctuates throughout the year. We will not propose an offer which you do not feel is affordable.

What are the fees for an IVA

In an IVA you must not be charged any administrative fees. Everything you pay must be paid into the arrangement. The creditors decide what we will be paid and after your IVA is approved they will allow us to take our fee from the contributions you make into the arrangement. If for any reason the creditors do not approve your IVA, you do not owe us anything.

Typical Example of an IVA

Total Debt £26,070

Contribution to creditors £187 per month x 60 months = £11,220

Writing off £14,850 (57% of your total debt)

Includes all fees approved by your creditors with our Insolvency Practitioner 

How is a homeowner affected?

The IVA is probably the only solution which fully protects your property. The IVA prevents a creditor from securing a debt against your property with a Charging Order. You cannot be forced to sell your home.

If you have equity in your property the creditors may only accept your proposal if you agree to try and release some of it in the last year of the arrangement. If your mortgage company is prepared to allow you to release equity there are a number of safeguards to ensure the amount released is fair and the repayments reasonable. Where you do have equity and are unable to release it the creditors may ask you to pay into the IVA for an additional 12 months in lieu of releasing any equity.

If you break the arrangement with your creditors and the arrangement fails you will lose the protection the IVA offers to a homeowner.

What if my circumstances change during the IVA

Creditors understand that a lot can happen while the IVA is in progress, and that something could change, making it difficult (or impossible) for you to keep up with your payments. You could lose your job, for example, or your rent/mortgage/utility bills could rise more rapidly than expected. You should always stay in touch with us because we’re here to help.

We can make variations to your arrangement and for substantial changes we may need to ask your creditors. Once an IVA is approved, we, you, and your creditors – want it to succeed. Sometimes an IVA will fail and you will need to consider other solutions to resolve your debt problems.

How is my credit rating affected?

Whenever you fail to make full contractual payments to your creditors your credit score will be impacted. Your credit file will show you are in an arrangement for 5 years and then for one year afterwards your credit file will show “arrangement satisfied”

Once your IVA is approved:

What do I do next?

Find out exactly whether an IVA is right for you and talk to one of our advisors

Call 0845 274 8000 or 0161 787 3440 

Call one of our friendly advisors and we can
Start Your Journey to Debt Freedom...
0845 274 8000
Usually Charged At Local Rate
Cheaper From A Mobile
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Pathfinder Financial Services also trades as DebtManagementUK and is a company registered in England number 7039857, Data Protection Registration number Z2019459, Consumer Credit Licence number 0659592. Authorised and regulated by the Financial Conduct Authority. All telephone calls are recorded and monitored. When calling our “0845” from a BT landline, the call may be free depending upon which plan you are on. If you are calling from a mobile it is probably cheaper to dial our “0161” telephone number. On this website we also provide hints, tips and guidance including a link to free services provided by the Money Advice Service. You will find a wealth of useful information on this site

Our registered office address is Barton Hall, Hardy Street, Eccles, Manchester M30 7NB

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