An IVA (Individual Voluntary Arrangement)is a legally binding agreement between you and your creditors. With an IVA, you could be debt free in 5 years. IVA’s should only be considered by those who are in severe debt. An IVA could be a solution for your debt problems, if you:
- Are in regular employment
- Have accumulated debts over £15,000
- Have debts from 3 or more creditors
- Do not want to go bankrupt
How does an IVA work?
In an IVA you agree with all your creditors that you will pay them a set amount of money, usually not all the money you owe them, over a certain period of time. This can be by a monthly sum, by releasing the equity in your house or even a mixture of both. Once the agreement is made, the amount you pay cannot be changed. At the end of the agreed time period for the IVA, provided you make all your payments, you are released from your debts. During the term of the IVA, you are obliged not to take any more credit, and you must comply with the terms or the agreement will fail.
What are the benefits of an IVA?
- An IVA is a flexible solution that can be tailored to your situation
- With an IVA you normally only need to make a single payment each month
- Creditors cannot add on interest to their debt once the IVA starts
- The IVA runs for a fixed term – generally no longer than 5 years
- At the end of the agreed period for the IVA, your debts are gone
- In an IVA you may have to release equity in a property but you don’t normally need to sell it.
Why not call us today to get IVA advice and get your finances back on track.
You can also view our other pages for more information on IVAs:
