Individual Voluntary Arrangements (IVAs)
It’s a fact of life that sometimes things don’t work out and your clients will require help to get themselves out of a financial crisis. Creative Mortgage Solutions are now in a position to offer your clients a solution to their problems in the form of an IVA.
This is a legally binding agreement that enables debtors to put a proposal to their creditors that, if accepted, will allow them to make one monthly affordable payment, usually for 5 years.
How does an IVA work?
A proposal is drawn up by a Licenced Insolvency Practitioner, which will contain financial information such as assets and liabilities, together with income and expenditure. The proposal will state how much disposable income your client can pay to the creditors and how this money will be repaid. The proposal is then sent to the creditors for them to consider.
A creditors meeting is then held. At the meeting creditors will vote to either accept or reject the proposals. The creditors may suggest changes (or modifications) to the proposal, which the debtor in turn would have to agree with in order for the IVA to proceed.
How do I know if my client is suitable for an IVA?
Our minimum criteria for an IVA is at least £15,000 of unsecured debt, a disposable income of at least £200 each month and at least three separate creditors. If your client meets this criteria then an IVA may be applicable. A full income and expenditure assessment would need to be carried out by Creative Mortgage Solutions before an IVA could be suggested as an appropriate solution.
What else do I need to know about IVAs?
Your client will have to release 85% of the value within their assets, which may mean downsizing their car or refinancing their home. For specific advice on a case please contact Creative Mortgage Solutions on 0800 1 69 68 67
Broker Benefits
- Dedicated broker support team
- Instant decision in principle
- Easy online application
- Treat customers fairly in the knowledge that your client is being offered a debt solution from one of the UK market leaders
- A new revenue stream from a growing market
- Potentially a remortgage in the future
- Secure your client for the future by providing a debt advice service
- Generate positive feedback and referrals from satisfied customers
Customer Benefits
- Free professional and impartial advice based on fact find and your customers need
- Non judgmental approach offering total confidentiality
- Immediate access to experienced debt advisers available from 8am till 8pm Monday to Friday.
- The potential to retain their property and clear their debts
- Make one affordable monthly payment to one company
- Help your customer on the road to financial recovery