What is an INDIVIDUAL VOLUNTARY ARRANGEMENT - IVA?
An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.
Due to its formal nature, an Individual Voluntary Arrangement - IVA has to be set up by a licensed professional Unlike private sector firms our teams do not charge any upfront fees for putting together a client's proposals for an Individual Voluntary Arrangement - IVA. How much will I be required to pay into an IVA?The amount paid iinto an IVA will vary on a case-by-case basis. The amont depends on what assets the debtors have and how much money they have available after their living expenses have been deducted from their monthly income.
What sorts of people enter into an IVAs?
Over 60,000 people a year enter into an IVA. They come from all walks of life from lawyers to policemen and teachers to car mechanics. Whatever the income levels or backgrounds of the person an IVA can help.
Is an IVA my only option ?
Other ways out of debt are :
What are the advantages of an IVA?
- Company directors, sole traders, partners, individuals and employees can all qualify for an IVA.
- You can still apply for a mortgage in an IVA.
- Unlike bankruptcy if a person does an IVA their home will not be repossessed.
- The creditors prefer an IVA because they get some of their money back.
- An IVA is private, unlike bankruptcy.
- You can keep a normal bank account with an IVA
- An IVA is legally binding so the creditors cannot change their mind.
- Up to 75% of all debt can be written off with an IVA.
What are the disadvantages of an IVA?
- If you stop making payments on an IVA your home may be at risk
- Bankruptcy may be forced upon you if an IVA fails.
- An IVA usually last for 5 years.
- An IVA may ask for some of the equity in the family home to be offered.
- An IVA is only suitable for debts of over £17,000
- You should not borrow any unsecured debts whilst subject to an IVA
To contact an advisor call 0800 074 6918. Alternatively complete the online enquiry form and an advisor will call you back at the time that you specify.
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