Licensed Insolvency Practitioners
As previously mentioned, an insolvency practitioner must supervise an IVA. An insolvency practitioner may act independently, work for a firm of insolvency practitioners or work as part of a larger debt management company.
Before providing IVA help and saying "I advise IVA", the insolvency practitioner should discuss alternatives with you.
Debt Management Companies
Debt management companies offer a range of services to people with debt problems. The scope of service ranges from company to company, however, typical offerings include:
- General debt advice
- Loan consolidation
- Debt management plans
- IVA help
- Bankruptcy Advice
Other Debt Advice Organisations
There are a number of not for profit organisations that operate to provide you with IVA help and advice. Whilst they may not be able to arrange your debt solution they will certainly be able to provide good advice. An example is the citizens advice bureau.
IVA Dangers
If you are advised that an IVA is your best option you should consider whether you are going to be able to keep to the agreement. Consider the expenditure that has been put forward in the proposal. You need to decide whether it is realistic. If you overspend there is the danger you will not be able to make the IVA payments and then face bankruptcy.
If after considering your income and expenditure you feel as though there is hardly anything to repay to the creditors, then an IVA is probably not the best option. For example, it is highly unlikely that an IVA will be suitable if your only source of income is benefits.
It's important to realise that only creditors with notice of the IVA are bound to it. Therefore if a creditor is not included, you must still repay them the debt you owe. If you have already started an IVA and this is the case you must seek advice.
Some debt management companies will charge a fee for advising, arranging and supervising the IVA. There are companies that do not, so ensure this is clear when you initially contact the company.
