What is an IVA Company?

An IVA company is a service provider that helps set up and maintain an Individual Voluntary Arrangement, (IVA). A debt management plan for people with debts exceeding £5000, that allows them to write off up to 80% of their debts. An IVA company appoints an Insolvency Practitioner (IP) to manage your debt repayments and deal with creditors on your behalf.

How do I choose an IVA company?

To enter an Individual Voluntary Arrangement a qualified IP is required. An IVA is a multi-year, legally binding agreement, so choose the right IVA company is an important consideration before deciding this debt solution is right for you. There are many IVA companies out there and you should consider your options and understand the services you will be provided before making an official agreement.

How do I know if an IVA company is good or bad?

Ultimately due diligence is the best practice when picking an IVA company to sign up with. Doing research and shopping around is important before going ahead with an IVA company.

Typically, a good IVA company will be open and transparent about their practices, their user reviews will be easy to find and generally positive (see our reviews below) similarly, information about their services and company will be readily available. Less reputable companies or practitioners will give vague or obscured information.

A reputable company will also show customers other debt solutions and work to find a debt plan that benefits them and fits their unique situation. Opportunistic companies will look to set a customer up on an IVA as it is advantageous for the company rather than the individual. A reputable, authorised practitioner will work to create a debt plan that best suits an individual and their current financial situation.

Should an IVA company charge a fee?

While free consultations are usually common practice and expected, it’s actually a good sign if a IVA company charges a fee for their services. Setting up an IVA, as well as assigning an IP comes with costs and so it is expected that these services should come with charge.

Are there free IVA services?

There are a number of debt charities out there, such as StepChange, that offer free debt services. However, it’s important to be aware that debt charities still charge IP fees and their service costs will be passed over to your creditors, meaning that you may not get the best repayment deal as you would with a top rated private service.

Can an IVA company cover all debts?

Though an IVA can cover most unsecured debts (see our IVA page for a list) there are debts that some IVA companies will claim to cover or include in your IVA payments, despite these debts being very difficult to include in an IVA. These include secured debts (debts tied to an asset like your home) in many instances these kinds of debts cannot be included in your IVA and companies that make exaggerated claims about their IVA plans are likely untrustworthy with their claims.

Knowing if an IVA is the right solution for you

An IVA can be a great solution for those who meet the right criteria for it. However,  it can also be misrepresented by companies who seek to gain business without a clients best interests. It’s estimated that registered IVA’s totalled 81,199 in 2021, more than double the number in 2015.

This is due, in part, to companies misselling and exploiting customers who may have been better suited to other debt solutions. Leading to people finding themselves in more debts than they originally started with.  

This is why it’s important to find a trusted debt solution company or one with FCA approval, who are able to offer the solution that works for the customer regardless of whether that is an IVA or not.

Read the reviews

When doing your research of IVA companies online, one of the first things to consider is user reviews. Seeing previous customers experience and opinion on a company is important to understanding if they are reputable and if the service seems right for you. Reviews will get you a clear idea of a company if they are trustworthy.

Reviews will usually be posted on an IVA companies’ website; however, these may be cherry picked or fail to give a full overview of the company. Sites like review.IO and google reviews are the best option for getting general opinions on a company.

For example, you can find MoneyPlus Advice’s Review.IO page here:

Finding out if an IVA company is legitimate

Before signing up for an IVA company, it’s important to do your homework around the business and their practices. A company who are operating competently should be easy to find online and their information easy to find. It’s good, though not required, to find a business address or get a feel for the company you will be dealing with.

Case in point, the MoneyPlus Group page is easily accessible and shows who and where’s about the company, along customers to research who we are before using our services.

Why should you choose MoneyPlus Advice?

Why should you choose MoneyPlus Advice?

Ultimately the decision of who your IVA company should be depends on you and your specific needs. It’s important to research the companies and weigh up who can offer a service and debt plan that truly works for you.

Regarding the points above, MoneyPlus Advice is a trusted, FCA authorised, IVA company who specialise in finding debt management plans that work for you. We have a proven history in the debt advice industry with over twenty years of experience, strong user reviews, a dedicated and passionate team and are open and upfront about finding you the best debt plan.