Around 63% of adults in the UK are in some form of personal debt. As a result, there are a variety of debt advisors available, from debt counsellors to insolvency practitioners. These can all advise you in different ways and may suggest different methods towards paying off your debts. These may depend on how much money you owe and the amount of debtors you owe money to.
An individual voluntary arrangement (IVA) is one of the most common ways to pay off debt in the UK. An IVA involves gradually paying off your debts over a period of time, usually around five to six years. This is usually extended if you miss payments.
Finding an IVA advisor is easy if you know what you’re doing. However, you should be aware of scams and illegitimate debt advisors, as these can result in more financial trouble in the long term. Below are some things to look for with an IVA advisor.
What should an IVA advisor do?
To enter an IVA, you will need to consult an IVA advisor. The IVA advisor, more commonly known as an insolvency practitioner, will look at your current finances, assets and future income to determine how to make payments towards your debt through the agreement.
All legitimate insolvency practitioners will ask about the entire range of your finances. These include areas such as future income and assets you may inherit within the next five years. Failure to declare certain assets or an increase in your earnings can result in complications with your debtors and may even result in legal action.
So, it’s essential that your IVA advisor is authorised to practise and well-trained in the areas of financial law. This will guarantee that you avoid potential legal disputes and further problems with your debtors.
How to find out if they’re legitimate
You can easily find a registered insolvency practitioner on the government website by entering your town or county. If you already have the name of an insolvency practitioner, then you can also verify their legal status to practise through the government tool.
It’s highly advisable that you check the reputation and legitimacy of an insolvency practitioner even if they were recommended to you by a friend. Searching for reviews online and using the government search tool will help you avoid scams and non-professionals.
What to look for during your appointment
Once you have done some background research on your insolvency practitioner, then the last step is to call them and arrange an appointment. Some will offer a free or discounted first meeting to discuss whether you are eligible for an IVA. Calling or meeting with your IVA advisor provides a great opportunity to see them at work and decide whether their professionalism and expertise are up to your standards.
Finally, don’t be pressured into making another appointment if you feel an IVA isn’t right for you. It’s usually a bad sign if an insolvency practitioner is overly assertive and tries to arrange another meeting straight after the first one.