What is an IVA (Individual Voluntary Arrangement?

An IVA (or Individual Voluntary Arrangement) is a legal binding agreement between you and the people you owe money to. The IVA itself is managed by an approved and Licensed Insolvency Practitioner who would be your main contact during the process. They will negotiate with the creditors on your behalf and hopefully come to an agreement without the need for bankruptcy action.

The good things about this arrangement, is that is enables you to reduce your monthly debt repayments to a much more manageable level and to have them paid off within a five year period. Although the creditors may not be too chuffed about having to accept less money, it is far more than they would receive if you were declared bankrupt. What's more, if you are a homeowner, you will still be able to obtain a remortgage and maybe even pay off the IVA early! With an IVA, your home and your job will not be at risk. Furthermore, the IVA is a private process and your financial circumstances will not be made public like bankruptcy which appears in the local press!

During the negotiations, an affordable monthly payment is agreed upon which will have to be maintained for five years. However, if your circumstance change, then this figure can be amended. The IVA is a powerful tool and can be used to write off a large portion of your debt, in some cases as much as 75%!

Are your debts less than £15,000?

Are You A Homeowner?