An IVA is a way of paying larger amounts of debts in a fixed repayment period of 5 years. If your creditors agree to your IVA at the end of 5 years any debt that is remaining is written off. In some cases you can get as much as 85% of your debts written off with an IVA.
When you are in an IVA you pay a reduced monthly payment that is based on what you can afford after paying your essential bills like your mortgage, rent, utility bills, food and transport.
An IVA is a formal debt solution so you must keep up repayments to your IVA as failure to keep up payments can result in bankruptcy. Also if you own your own home or have any assets these will be taken into consideration by your creditors. Your expenditures will be restricted whilst you are in an IVA. However if you speak with a Refresh Debt Adviser they will be able to conduct a full fact find of your circumstances and advise you of the factors you should consider when looking into an IVA. Refresh Debt Services do not operate IVAs inhouse as they need to be set up and supervised by a licenced Insolvency Practitioner. If you are suitable for an IVA your Refresh Adviser may refer you to an Insolvency Practitioner to assess your IVA application further.