Best IVA Companies UK

When looking for an IVA company you need to choose a reputable insolvency practitioner.

The best IVA company 2020 is there to assist you with debt help support.

There are many insolvency practitioners to choose from but here is the updated list of the top-rated IPs in the UK.

Best IVA Companies 2020

From our research, here is a list of the best IVA companies in April 2020:

  1. Abbotts Insolvency
  2. Trust Debt Advice
  3. Debtline
  4. Hanover Insolvency
  5. NTF Financial Solutions Insolvency
  6. National Debt Advice
  7. Creditfix Insolvency
  8. Stepchange

What is an IVA Company?

Individual Voluntary Arrangements are generally called an IVA.

It’s a formal, contractual debt arrangement between you and an insolvency practitioner.

The insolvency practitioner takes care of your debts and lowers the payments per month to one affordable monthly payment.

The individual voluntary arrangement lasts five years and is a contract between you and the chosen insolvency practitioner.

IVA company

An IVA company is the one that organises the setting up of IVA’s.

An individual voluntary arrangement is set up and managed by an Insolvency Practitioner (IP).

It’s crucial to choose the best IVA company that suits your needs.

How To Choose the Best IVA Company?

The best IVA company is the one that fits your situation perfectly. In terms of qualities, each company differs from the other. It’s difficult to recommend one company as the best.

It is advised to base your decision on:

  1. Ease of setup with the insolvency practitioner
  2. Cost of fees with the insolvency practitioner
  3. Confidentiality

When choosing an IVA company, you should be looking for the following:

  1. Check it is Free

When arranging for an IVA through companies, consider the one with no upfront fees. Many trustworthy companies do not charge for an IVA.

  1. IVA Reviews

One way to know about a company’s performance is to take a look at customers feedback. The best IVA companies will be highly rated. It usually means that you will have a high-quality experience with the company.

Avoid companies with negative reviews or lack of positive reviews. They are not worth wasting time or money. You can check out Google or Trustpilot for independent reviews.

  1. Cheapest IVA’s

Some IVA companies start their minimum IVA payments on unaffordable levels. It’s hard for those people who are already struggling with debt. Usually, debt charities and debt management companies fall in this category.

It’s important to consider companies that have low minimum monthly payments. It would be easy to afford their monthly fee, even if things took a turn for the worse.

  1. Well established

Look for companies that are well established for several years. Keep in mind that the IVA proposal should be perfect before it reaches you.

An experienced and well-established company will never let you down.

  1. Online availability

An IVA company should be available online. Avoid companies that require a home visit.

Also, stay away from those that ask their customers to visit their office.

  1. Confidentiality

Managing debt is a private issue. Make sure the company you chose, keep your information 100% private. They should not send anything to you without your permission.

They will keep your details confidential all the time and will not share or discuss anyone related to you or not.

How Do IVA Companies Make Money?

An IVA is usually flexible to suit your needs, but it’s expensive as well. It’s because it has to be set up by a professional insolvency practitioner. The IP charges fees for setting and managing your IVA.

This professional service will be provided to you by the IVA company.

IVA companies only charge you a fee when your IVA is proposed and accepted by your creditors.

All fees are usually paid out of your regular monthly payments. You don’t have to pay any additional charges.

Once your individual voluntary arrangement is accepted, you have to pay the following fees to the insolvency practitioner:

  1. A nominee’s fee
  2. Supervisor’s fees
  3. Costs/expenses

Nominee fee

This fee applies to the professional costs and fees of the company for the organisation of your IVA. It includes:

  1. Preparing your IVA proposal.
  2. Organising the creditors’ meeting. In this meeting, creditors can request changes to the IVA’s terms.

Generally, the cost is between 1000 GBP and 2700  GBP. The fee structure may vary from one company to another.

The Nominees’ fee is the first to be paid before any payments made to the creditors.

Supervisor fees

The Supervisors’ fees cover the continuous work involved in operating your IVA. It usually is charged at 15–18% of any money received by the Supervisor.

It also includes any money distributed to your creditors. Your monthly contributions, any assets and windfall acquired during the term of IVA included as well.

Costs

Companies are entitled to claim back the cost of certain expenses like postage, insurance, etc. and sustained directly in connection with the running of your IVA.

The amount of fees is determined in IVA proposals.

IVA Companies To Avoid

Serious debts are concerning, but what’s even more frustrating? Wasting time and money on debt relief scams and bogus companies. There are several businesses on the market, but not all worth trying.

Here are some aspects that scam companies or new companies entail. You should definitely avoid such companies.

Large upfront fee

When you are looking for IVA companies to consider what they are offering. Some companies promise to clear debts and submit IVA on your behalf and charge a fee.

If the company requests a hefty upfront fee, you should avoid such companies.

Warning signs

One of the prominent warning signs is found on the company’s advertisements. Companies claiming to reduce payments to creditors by 75 percent should definitely be avoided. Such claims are virtually impossible to fulfil.

Stay away from companies that make absurd claims. They rarely know what they are dealing with.

Lack of Business Address

Many companies contacted through emails and fliers. Sometimes, the scam companies will advertise in newspapers. One of the main warning signs is that the company operates with only a postal box address.

There is no actual address whatsoever. All this makes it easier for the company to remain hidden. You should avoid such companies at any cost.

License

An IVA company usually requires a consumer credit license from the government. Their IP should have a background in accountancy or law. They are licensed to provide insolvency services.

Check these licenses before agreeing to let the company arrange an individual voluntary arrangement. If a company hesitate or unable to provide these licenses, avoid them.

Failure rate

Various IVA firms have a failure rate of less than 15%. However, others have over 30%.

When choosing an IVA company, check out their failure rate. If they have high failure rates, move to another option.

Extended Time to Issue a Completion Certificate

Usually, firms get most certificates out in twelve weeks after the final payment. Meanwhile, some have many IVAs still open a year later. Avoid companies that took too much time to issue a completion certificate.

Ask for details

The best way to uncover a scam or test a company’s experience is to ask for details. Ask the spokesperson how they will conduct the IVA arrangements. Get into the specific details. If the company cannot answer, then be careful.

Some other tips to help you avoid scam companies are:

  1. Make sure you choose a free service provider for setting up your IVA.
  2. Invest time with your advisor so he can understand your circumstances.
  3. Your advisor should be knowledgeable and empathic. They should be able to explain all aspects of the IVA solution to you in clear and plain English.
  4. The purpose of any consultation should be to provide you with balanced advice. You need to make sure you can make an informed decision on your own terms.
  5. Be cautious of unrealistic contributions.
  6. Beware of the over-promise or guarantee of success.
  7. Always follow your instincts.
  8. Make sure you have a money-back guarantee in case of your IVA rejection.

Other Debt Solutions

An IVA is not the only debt solution you have and this is where speaking to a qualified debt advisor is very important.

After speaking to a debt consultant you might realise the best solutions are one of the following:

  • Debt Management Plan
  • Bankruptcy
  • Debt Arrangement Scheme (aka DAS)
  • Trust Deed

Make sure you take time to understand all the debt solutions available before making a decision because DMPs (aka debt management plans) are also a popular choice in the UK.

All UK Insolvency Practitioners

Here is a full list of Insolvency Practitioners in the UK:

The insolvency practitioner list above gives you plenty of options to choose the best IVA firm in April 2020.