IVA -Individual Voluntary Arrangement

An IVA is a good debt solution to those with serious financial problems and are simply unable to keep up with their monthly payments to multiple creditors. This is suitable for individuals with more than £15 000 of unsecured debt. It is considered the best, most viable and less drastic alternative to bankruptcy.

An IVA allows you to only pay what you can afford over a 60 month period. You, your IP (Insolvency Practitioner) and your creditors take all personal circumstances into consideration before settling for a fixed amount. At the end of the 60 month period, any unaffordable debt is written off.

Because an IVA is a legally binding agreement, both you and your creditors are legally bound by its terms and conditions. Also, all interest and charges on debt are frozen, meaning your debt amount will never increase. All legal actions, including bankruptcy proceedings, are stopped.

IVAs are ideal for those individuals who are employed and do not want to file for bankruptcy.

If you want to hear more about how an IVA can work for you, take our non-obligatory debt-test or call our expert advisors on 0800 048 1771.