Can anyone enter into an IVA?

An IVA is available to all Individuals, Sole Traders and Partners who are experiencing difficulty in meeting repayments to unsecured creditors. You should have a stable income with a surplus each month after living costs. Your unsecured creditors should exceed €40,000 to more than one creditor.

Will Creditors accept my IVA?

This will depend how creditors vote. At least 60% of your creditors (by number and value) must approve. If creditors vote in favor then all unsecured creditors will be bound by the IVA. Generally creditors will be willing to vote for an IVA as they should get a better return than under a bankruptcy situation.

Creditors will want to see that genuine efforts are being made to keeping expenditure to essential items only and typically will not accept high levels of expenditure on socialising, gym membership, holidays etc.

How much does it cost?

Out initial consultation is free. In addition we do not charge up front fees as our charges are included in the IVA monthly repayment. The amount of our fees varies according to the overall level of debt. A schedule showing the level of fees to be charged to an IVA is included within the proposal for you and your creditors to see.

Typically our fees for the cases we mention in our testimonial are approx. €1,950. Please note, there may be legal fees of an additional €1,000.

How long will an IVA last?

Generally over a period of 3 to 5 years.

What debts can be included in an IVA?

The following can be included:

• Bank accounts
• Credit cards
• Store cards
• Finance company loans
• Outstanding VAT
• Outstanding revenue commissioners income tax
• Loans from friends and family

However you must still continue to make schedules repayments to secured debtors.

Debts that cannot be included in an IVA are:

• Mortgages and other loans secured on your property
• Maintenance Payments
• Court Fines, speeding/parking tickets etc
• Rent Arrears
• HP Agreements

What happens if I can't make the payments into my IVA?

IVA are only suitable for individuals who have a regular stable income that will allow them to make monthly repayments over the 3 to 5 year term. Failure to keep up repayments could lead to bankruptcy. Creditors may be willing to take into account loss of income due to unforeseen circumstances e.g. illness and lower repayments for a period of time as a result.

What happens if my financial situation improves during the IVA?

DebtBreakers will undertake an annual income and expenditure review to ensure the monthly payments still reflect your surplus income. Generally 50% of any increase in your income will be added to your monthly repayments. You should keep us informed of any such changes.

What if I receive a windfall during my IVA?

Your IVA contract will include a clause that allows your creditors to benefit from any windfalls such as lottery winnings etc.

Will my partner be affected by my IVA?

If any of your debts are joint with your partner then they are also fully liable for the debt. Your creditors will have the right to pursue the other partner for the part of the debt not covered by the IVA.

Who will find out about my IVA?

Bankruptcy’s are published in your local paper but IVA’s are not. This is often why people favor IVAs over bankruptcy as it is kept more private. Your IVA will however be published in the court recorded which are available to members of the public to access if they wish to do so.

What will happen to my pension?

If you make contributions to a personal pension or AVC you creditors’ may ask this to be suspended. Your state pension is unaffected.

What happens if I have equity in my property?

Creditors will expect a proportion of your share of the equity to be paid into the IVA. Typically this will be around 75%.

Can the creditors continue to chase me when I am in an IVA?

No, your creditors have no legal to chase you.