IVA (Individual Voluntary Arrangement)
What is an IVA?
‘In the United Kingdom, Individual Voluntary Arrangements (IVAs) are a formal alternative for individuals wishing to avoid petitioning for their own bankruptcy. This is known as a Protected Trust Deed (PTD) in Scotland‘
‘The aim of an IVA is to help you clear your debts at a reduced level over a fixed term, usually over a period of 5 years. Through the duration of the IVA you won't receive any further contact from your creditors, plus all interest and charges will be frozen. At the end of the 5 years any remaining debt should be cleared ‘
Is an IVA right for me?
- Owe two or more unsecured lenders £15,000 or more in total
- Unable to afford monthly debt repayments
- Could commit to making lower monthly payments for five years
IVA’s Explained
An IVA is an agreement between the debtor and the creditor. The debtor has a commitment to repay as much of their total debt over 60 months and this monthly figure is determined through what you can realistically afford each month, so will look at your income and living expenses. Once the final payment is made on the IVA, any remaining debt is legally written off and you become debt free.
An essential part of an IVA is to freeze all interest rates and charges which mean your debt will not increase once you enter into the arrangement. An IVA will also stop any legal action that may be taking place against you, including any bankruptcy proceedings.
All contact from your creditors will stop and you can become debt free in 60 months.
An IVA is a legally binding agreement, giving you the assurance that once a payment is agreed your creditors cannot ask for more or change their minds.
Our Service
- We will look at your income and essential living costs (mortgage/rent, utility bills etc) and work out an affordable monthly repayment.
- We will establish whether an IVA is the best possible solution for you, we have strategic partnerships in place with professional bodies to help find the right solution for you, whether it's an IVA or PTD (Scotland).
- We will refer you to one of our Insolvency specialists who can help you put an IVA proposal together.
An IVA is a formal debt solution designed to assist with repayment of overwhelming debt. It is a legally binding agreement, so all parties (debtor and creditor) must adhere to the arrangement throughout the duration of the IVA. The debtor has a commitment to repay as much of their total debt over 60 months and this monthly figure is determined through what you can realistically afford each month.
Advantages of an IVA Disadvantages of an IVA
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