What is an Individual Voluntary Arrangement -an IVA

An IVA is suitable for individuals who are having difficulty making payments to their unsecured creditors.

It is a legally binding solution whereby you pay an affordable monthly amount over an agreed period of time.

This is usually but not always 5 years during which time interest and charges are frozen. After that time if you have maintained your IVA payments then the balance of your debt will be written off. During your IVA unsecured creditors cannot take legal action to recover their debt or contact you about them.

upsides of an IVA

• You make a single monthly payment which your Insolvency Practitioner will administer and distribute to your unsecured creditors
• Interest and charges are usually frozen as long as you keep up your payments
• We will help you prepare your proposal, including agreeing the level of your household and personal spending based on guidelines acceptable to creditors
• Creditors whose lending is unsecured can't take any further action or contact you
• On completion of the IVA the balance of what you owe your creditors is written off

things to be aware of

• If your circumstances change and your creditors will not accept amended terms your IVA is likely to fail. Creditors will then be able to take further action against you which could result in Bankruptcy
• Home owners with equity may be asked to release this by remortgaging their property in the 5th year of the IVA or if not possible to extend the IVA for up to a further 12 months
• An IVA is entered on a Public Register
• Your credit file will be affected for 6 years from the commencement of your IVA. You will be unable to obtain further credit in excess of £500 without the authority of your IVA supervisor
• You may be required to make non essential assets such as Saving Plans and ISA's available to your creditors as part of your IVA