An IVA is an agreement between you and your creditors that aims to facilitate repayment of your debts and solve your financial problems without having to file for bankruptcy. As with any legally binding contract, you should not enter into it lightly.
IVAs were introduced as part of the 1986 Insolvency Act and have proved to be a popular alternative to bankruptcy since then. Part of the reason for this popularity is that it reduces the total amount of your debt by that you need to pay back.
On making contact with Harrington Brooks, you will be assigned an Insolvency Practitioner to offer expert guidance and assistance in choosing the best plan to suit your circumstances. Essentially, the aim of the IVA is to lower the total amount of debt that you have to repay and allowing you to repay this over a typical longer repayment period of 60 months. You make monthly payments for a fixed term designated by your creditors and your Insolvency Practitioner.
An IVA assures you of protection from court action and the embarrassment of a public declaration of bankruptcy. This is not the only advantage of choosing an IVA over bankruptcy though; call Harrington Brooks to for professional debt advice and we’ll talk you through your options.
The choice of taking out an IVA rather than facing bankruptcy has advantages, but there are some disadvantages too and it may not be suited to everyone’s financial and employment situations.