IVAs

What Is An IVA?

An IVA (Individual Voluntary Arrangement) is an agreement which is legally binding and is made between you and your creditors.

How It Works

We would make the agreement on your behalf after sitting down with you and working out how much you have coming in each month and what your outgoings are and then deciding how much you can afford to pay each month to your creditors. An IVA would usually run for a set period which could be between 1 and 5 years and means that you would payout one monthly affordable sum. After the IVA has run its course, up to 65% of the remaining debt, will be written off leaving you debt free.

The beauty of an IVA is that once it is in place any interest and extra charges would be stopped so your debt will not continue to grow.

The Benefits And Features Of An IVA

• An IVA could be a way of avoiding bankruptcy and the stigma that is associated with it
• Interest and extra charges would be frozen
• If you own a business then you would be able to continue trading which would allow you to maintain your income
• Any legal action against you would be stopped
• An IVA would be tailored to the needs of the individual
• Any existing CCJs would be cancelled out
• The costs from administration would generally be lower than those associated with bankruptcy which means you have more to offer your creditors higher payments
• You would no longer receive phone calls and letters from your creditors, which can bring great relief alone
• Providing the required majority of creditors agree to the repayments (usually 75%), those who vote against the IVA would be bound by it
• You make affordable monthly repayments to clear your debt within a certain timeframe

Alternatives

While an IVA is one solution that could be taken as a means to break free of debt worries there are other solutions that could be taken into account.

Which solution might be the most suitable?	Debt Management	IVA
One lower monthly affordable repayment
No equity needed by having to sell your property
Fewer monthly payments to make each month
Your creditors are under obligation to write off debt
Your creditors are obligated to offer help
The agreement runs for a fixed period of time
You will not have your creditors chasing you
A solution alternative to bankruptcy
A flexible solution to suit your personal circumstances