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Individual Voluntary Arrangement (IVA)

Which IVA Companies to Avoid in 2024

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Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
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Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Mar 12th, 2024
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For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

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IVA Companies To Avoid

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Wondering which IVA companies you should avoid? You’ve come to the right place for answers. Every month, over 170,000 people visit our website for advice on debt solutions.

In this helpful guide, we’ll explain:

  • What an IVA is and how IVA companies work.
  • How to choose the right IVA company for yourself.
  • The signs of an IVA company to avoid.
  • How to complain about an IVA.
  • The best IVA companies in 2023.

From July to September 2023, the Gazette reported that there was a total of 13,965 Individual Voluntary Arrangements.1 This figure highlights the importance of choosing the right IVA company —a decision that can indeed be tough.

Don’t worry! With our expertise and understanding, we’ll guide you through your options and help you make the best possible decision.

Let’s dive in.

UK Personal Debt 2022 Update:
There were 29,291 individual insolvencies in England and Wales in March to May 2021, a fall of 8.6% from 32,047 for the same period in 2020.

(Source: The Money Charity)

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

IVA Companies to Avoid 

When you’re suffering from debt problems, the last thing you need is an issue arising from the debt solution you’ve opted for. 

However, this is something that’s far too common.

I often see IVAs fail because debtors are not properly guided by their insolvency practitioners.

Of course, if you’re already in an IVA and are dealing with an IVA company, you can’t do much about it except for either cancelling your IVA or complaining about your insolvency practitioner.

However, today, I’d like to talk about some telltale signs that you can look out for which will help you avoid these unethical IVA companies. 

Make sure that when looking at different insolvency practitioners, you have your eyes peeled for these red flags so you don’t end up in a worse situation than you were in the first place. 

Unrealistic Claims 

Always make sure to beware of IVA companies that make incredulous or unrealistic promises such as “reducing your debt by 90%”. 

While it’s true that an IVA can reduce the amount of money you owe, claims such as this one are fairly unrealistic and are an indication that you will be manipulated and lied to throughout the entire process. 

Unusually High Rate of Failure

You have the right to inquire about an IVA company’s failure rate. 

While it’s true that not every IVA can be successful, a very high IVA failure rate can be cause for concern. Keep in mind that around 15% of IVAs fail so avoiding a company with a percentage much higher than that is a good idea!

Bad Reviews 

Of course, this ties into what I mentioned earlier about reviews of IVA companies. 

Client reviews are a great resource for getting advice about which company is worth opting for and which one isn’t. 

If an IVA company has a majority of negative reviews, you should definitely look towards other companies. 

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

IVA Case Study - Comparison between £587 of average previous payments to £158 of new payments after an IVA is set up.

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

Best IVA Companies in 2023

Here are some of the best IVA companies in the UK in 2023.

  1. Financial Wellness Group
  2. StepChange
  3. PayPlan
  4. Bennett Jones
  5. Forest King
  6. Begbies Traynor Group
  7. Astute Financial.

If you would like some more information on the best IVA companies, check out my guide.

How do I Choose an IVA Company for Myself? 

Before you opt for any one company, it’s important to get debt advice to determine whether an IVA would even be the right choice for you or not.

Sometimes, IVA companies themselves offer free sessions to determine whether an IVA would be suitable for your situation or not.

You can also get professional debt advice from independent debt charities such as Stepchange and National Debtline.

Once you’ve determined that an Individual Voluntary Arrangement (IVA) is definitely the best debt solution for you, then you can start looking at IVA companies. 

When you’re trying to find the best IVA company for yourself, here are some things to look for: 

No Upfront Fees 

It would be extremely detrimental for you to opt for an IVA company that needs you to pay more in upfront fees

Always opt for an IVA company that does not charge money for the initial introductory meeting and setup process. 

Please note that almost all insolvency practitioners will most likely have ongoing fees but they will be a part of your IVA payments. You will not have to pay those fees separately. 

IVA companies which charge you money for the introductory meeting should be avoided at all costs. 

» TAKE ACTION NOW: Fill out the short debt form

Reputation and Reviews 

It’s a great idea to look up reviews online of IVA companies that you’re considering. 

Getting an opinion from individuals that have actually used an IVA company’s services can be a great indicator of what your experience will be like if you choose to opt for an IVA with them. 

Always try to go for an IVA company that has been operational for a relatively long time and has a majority of positive client reviews under their belt

While it’s true that a relatively new IVA company with fewer reviews can provide you with high-quality services, it’s still a risk that you really don’t have to take. 

It’s fairly easy to look up online reviews and find the IVA company that you think would work best for you. You should always do this before you opt to apply for an IVA with any organisation. 

Affordable Monthly Payments 

Of course, you’re going to want an Individual Voluntary Arrangement where your monthly payments are low and thus, affordable

One big factor that can end up increasing the amount of money you have to pay in your monthly payments is your IVA company’s fees and your Insolvency Practitioner fees. 

Of course, companies with higher fees will have higher IVA contributions per month than companies with lower fees. 

Thus, it’s important for you to look at different IVA companies and choose an IVA company with a lower fee so you don’t have to pay too much every month. 

When you’re planning a budget for debt management during your IVA, your insolvency practitioner is going to help you make it.

It’s important to have an IP that is sympathetic towards your situation rather than someone who is only looking to have their fees extorted from you. 

Thousands have already tackled their debt

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I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

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Reviews shown are for The Debt Advice Service.

How Do You Complain About an IVA?

The IVA complaint process is relatively straightforward.

If you are unhappy with your IVA, the first thing you should do is talk to your IP. They can advise you on your best course of action and amend the terms of your IVA if it would be appropriate.

I recommend that you send in your complaint in writing and hold onto a copy for your records. That way you have proof of your complaint and when you sent it.

If you are not happy with your IP’s response, you can complain directly to the Insolvency Service.

They will look at your complaint and deal with your IP’s registered organisation if necessary.

If you feel that the Insolvency Service has not dealt with your issues properly, you can make a complaint directly to GOV.UK.

Were you advised to get an IVA by a debt management company but you now think that this was bad advice? You could complain to the Financial Conduct Authority (FCA).

All debt management companies are bound by the rules of the FCA which means that they have to give you the best advice for your specific financial circumstances.

If you think that your debt management company did not give you the best advice, you should make a complaint.

If you are still unhappy with how your complaints have been handled, you could make a complaint to the Financial Ombudsman Service (FOS).

Keep in mind that the FOS will only get involved with your issue if you have given your IP or debt management company a reasonable length of time to sort out your complaint.

Contacting the FOS with a complaint should really be your last resort or if the behaviour of your debt management company gets inappropriate.

FAQs

What jobs are affected by an IVA?
Most jobs are not affected by an IVA. However, those that are affected and you cannot apply to are the ones involved in managing money such as an accountant, banker or insolvency practitioner.
Do most creditors accept an IVA?
Creditors do not have to accept an IVA request. However, if the circumstances are right, most creditors will accept an IVA petition.
Can I change my IVA company?
No. You cannot change your IVA company directly as it is a legal binding contract between you, the IVA provider and your creditors. However, you can cancel your IVA…
Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

References

  1. The Gazette – UK individual insolvency statistics: Q3 2023
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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.