IVA - Individual Voluntary Arrangement
An IVA or Individual Voluntary Arrangement is a popular solution for unaffordable unsecured debts over £5,500. An IVA can :
- Write off a significant amount of debt.
- Stop interest and charges.
- Stop court action, including bankruptcy.
IVAs are designed to help people with unaffordable unsecured debts. It allows you to avoid bankruptcy and become debt free in 60 months by making payments you can afford.
If you owe at least £5,500 between 3 or more creditors and can afford a minimum of £70/month towards your debts, you should consider applying for an IVA.
Key Benefits Of An IVA
You're Not Alone.
In England and Wales approx. 150,000 people are current doing an IVA. Over 16,000 of those are with us. Apply for your IVA now.
- An IVA Reduces Your Debts
Typically, you'll repay just 30%-80% of your debts; this figure depends on personal circumstances and the monthly payments you can afford.
- An IVA Stops Interest and Charges.
Over the normal 60 month duration of the IVA, no more interest or charges is added to your debts. This alone can save you £1000's.
- No More Creditor Letters and Phone Calls
Creditors are not allowed to contact you about these debts once the IVA is in place and while payments are maintained.
- An IVA Prevents Bankruptcy
An IVA means you've reached an agreement with your creditors whereby they cannot bankrupt you while you maintain the agreed payments. Bankruptcy could mean losing some of your assets, including your home and car.
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What Is an IVA?
An IVA is a legally binding agreement between consumers with unaffordable unsecured debts, and the companies to whom they own money - their creditors. It's you saying to them:-
"I can't afford to pay my debts in full and the interest is making things worse. If you stop all interest, and I pay what I can for 60 months - will you let me off the rest?"
Do I Qualify For An IVA?
Whether you qualify for an IVA depends on several factors; It boils down to how much you owe, what assets you have, what you can afford to pay into the IVA and the stability of your income to enable you to maintain payments.
In short, you need to owe at least £5,500 spread over 3 debts, and be able to pay at least £70/month into the IVA. You need to be technically insolvent, meaning you can't afford to pay your debts as they fall due; nor have you assets you could easily sell to raise money to clear these debts.
Applying For An IVA
The first step to get in contact with us. We'll discuss your debts and see how much you can realistically afford to pay back each month. Should an IVA be the most suitable solution, we can make a formal IVA Proposal to your creditors. Before, that - if any legal action is pending, we'll seek to get that stopped while your proposal is being prepared.
If your IVA proposal is accepted by 75% of the creditors by value of debt - the IVA is approved. Your debts are frozen and no more interest or changes can be added. Upon the successful conclusion of the IVA, any debts remaining are written off.
IVA and Home Ownership
If you're a homeowner, your mortgage and other secured repayments are budgeted for before IVA payment levels are set. This allows an IVA holder to afford and maintain such repayments avoiding repossession. Home ownership and IVA's can be complex, especially in the case of joint ownership and joint debts. See more about IVAs and homeowners.
IVA's for self employed people
IVA's are normally only possible for residents of England, Wales or Northern Ireland. In Scotland, there is an similar option; the Trust Deed.
Before entering into an IVA, you should be aware all the implications, your rights and the fees involved. Please see key information and fees.