What is an Individual Voluntary Arrangement (IVA)?
‘Individual Voluntary Arrangements’ were introduced in 1986 as part of government legislation as a better alternative to bankruptcy. They provided people with a way to deal with their debts without extreme long term consequences.
The arrangement is a legally binding agreement between you and your creditors. Due to its formal nature, an IVA has to be set up by a licensed professional called an Insolvency Practioner (IP). The arrangement usually lasts for a period of up to five years, after which you will be clear of the debts included in your arrangement.
What does the IVA entail?
Essentially, the IVA offers a chance for you to contribute one affordable monthly payment towards your debt. This continues for the length of the IVA, after which any outstanding debt is ‘written off’. The amount written off depends on your individual circumstances and can be as much as 60-70% of the debt.
Any interest and debt charges will be frozen and creditors will be prohibited from demanding additional payments. Any assets, such as your home and car are usually protected under the IVA.
For further information on IVA – please see our IVA FAQ section.
Do I qualify for an IVA?
To qualify for an IVA, you should normally:
- Have in excess of £15,000 debt
- Have 3 or more creditors
- Be able to afford the monthly repayment
To apply – please fill in the form below:
