Insolvency Services

TAKE CONTROL OF YOUR DEBT AND MOVE FORWARD TO A BRIGHTER FINANCIAL FUTURE

Personal debt FAQs

Umbrella provides Individual Voluntary Arrangements (IVA) for those struggling with debt allowing you to take control and move forward.

Q. Will my IVA be approved?
A. An IVA has to be agreed by over 75% (by value) of your creditors who vote on your proposal. We follow the IVA protocol so there is a high certainty that any proposal put forward by us will be accepted by your creditors. Following the acceptance of the IVA we will manage all contact with your creditors.

Q. What are your fees?
A. As an IVA can only be prepared for you by a Qualified Licensed Insolvency Practitioner, there are inevitable professional fees for arranging and administrating this. At Umbrella there is no fee charged unless your IVA is accepted by your creditors. Any fees and IVA costs are deducted from your agreed payments and are not in addition to the amount you can afford to pay. i.e. if it is agreed that you will pay £200 per month for 60 months this is all you will pay.

The fees for an IVA are made up of a Nominee’s Fee which covers the fee for putting together the contract and presenting it to your creditors. This is usually a sum equivalent to your 1st 5 monthly payments subject to a minimum fee of £1,000.

In addition there is also a Supervisor’s Fee, which covers the ongoing management of your IVA and liaising with your creditors, and is calculated at 15% of subsequent payments after the Nominee’s fee has been paid. Certain costs, such as insurance and postage, are also recharged to your IVA and are approximately £1,000 per case. All of these charges are disclosed to you and your creditors before you enter into an IVA.

We would only advise you to proceed if it is in our professional opinion the best option for you. No fees will be payable if we do not recommend an IVA.

See A Creditors Guide to Insolvency Practitioners Fees in Respect of IVAs

Q. Will an IVA have an effect on my credit rating?
A. An IVA does affect your credit rating for 6 years after approval and it is normally a requirement that you do not apply for new credit while in an IVA.

Q. What happens if my circumstances change once my IVA has been approved?
A. If your circumstances change then your payments may go up or down depending on affordability. If you received an unexpected windfall of over £500 will have to go towards repaying your debts.

Q. Are all my debts included?
A. An IVA covers your unsecured debts such as personal loans, credit cards and overdrafts. There are however a number of exceptions including fines, student loans, child maintenance payments and certain orders following divorce. Payments on your mortgage, secured loans or secured car finance will still need to be maintained where applicable – these debts cannot be included in an IVA but will be taken into account when considering what monthly payment are affordable. 

Q. Can an IVA help me avoid bankruptcy?
A.  A benefit of an IVA is that it can help you avoid bankruptcy however a failure to comply with the agreed terms of the IVA can lead to bankruptcy proceedings being initiated against you.

Q. Will anyone be able to find out I have an IVA?
A. An IVA is recorded in a public register (but is not required to be published in your local newspaper – unlike bankruptcy).

Q. What happens at the end of my IVA?
A. Once all terms of the IVA have been complied with, we will issue a final report to your creditors and issue you with a Certificate of Completion which you can then send to the credit reference agencies so they can update their records.

Q. Where can I find out more about dealing with my creditors?
A. You can find out more about dealing with your creditors in a guide produced by the Insolvency Service: https://www.detini.gov.uk/sites/default/files/publications/deti/In-debt-....
You can also find alternative free debt advice organisations as recommended by the www.moneyadviceservice.org.uk.
For more information on what an IVA is see: https://www.moneyadviceservice.org.uk/en/articles/what-is-an-individual-... also R3, the insolvency trade body,  have produced a publication “Is an IVA Right for me”

If you think an IVA could help you please call Umbrella for a no-obligation review on 0800 611 8888 or email us at iva@umbrella.co.uk or

Download PDF of The Insolvency Service ‘In Debt Dealing with your creditors’

Download PDF of the Association of Business Recovery Professionals ‘Is a voluntary Arrangement right for me?’

Download PDF of Voluntary Arrangements – A Creditor’s Guide to Insolvency Practitioners Fees.

Testimonials from clients of Umbrella Accountants LLP

"Excellent customer service. Staff always helpful. Thank you." Lyndsay S

"Always very helpful staff members. Never had an issue." Jemma H
"Very professional approach, always there for you to help, outstanding guidance. Thank you so much for all." Joanna B
"Very supportive and helpful at dealing with financial problems" Sue KL

 

 

 

Umbrella IVA is provided by Umbrella Accountants LLP  who are authorised and regulated by the Financial Conduct Authority.

Registered Office: Bollin House, Bollin Link, Wilmslow, Cheshire, SK9 1DP: Company Number OC360021. Data Protection Number Z2517380. VAT Registration Number 107346824
Umbrella, Umbrella IVA, Umbrella Insolvency, IVA.Guru and IVA.direct are trading styles of Umbrella Accountants LLP.

Thomas Fox LLB MIPA is an employee of Umbrella Accountants LLP and is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association.

Professional Indemnity Insurance - In accordance with the disclosure requirements of the Provision of Services Regulations 2009, the firm’s professional indemnity insurer is Hiscox Insurance Company Limited, 1 Great St. Helens, London, EC3A 6HX. The territorial coverage is worldwide excluding professional business carried out in the United States of America or Canada and excludes any action for a claim brought in any court in the USA or Canada.

See our complaints policy. See our privacy policy. 
 

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Download PDF of The Insolvency Service ‘In Debt Dealing with your creditors’

Download PDF of the Association of Business Recovery Professionals ‘Is a voluntary Arrangement right for me?’

Download PDF of Voluntary Arrangements – A Creditor’s Guide to Insolvency Practitioners Fees.