Struggling With Debt? There Is a Way Forward.
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If you’re overwhelmed by bills, creditor calls, and rising interest, an Individual Voluntary Arrangement (IVA) could help you regain control. Stop the pressure and start rebuilding your financial future today.
What Is An IVA, Is It Right For Me?
This section covers "what is an IVA" (Individual voluntary arrangement) and provides a guide to whether you qualify for an IVA as an alternative to going Bankrupt.
So what is an IVA?
An IVA is short for Individual Voluntary Arrangement.
Here are the basics of an IVA:
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In an IVA, a single, affordable monthly payment is agreed between you and your creditors.
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These payments are usually made for 5 years.
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These payments are then divided between the unsecured creditors/debts included within the arrangement.
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Once an IVA is approved by your creditors, they will normally agree to stop adding further interest or charges to the debts included in the arrangement.
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At the end of an IVA, any outstanding debts included within the IVA are written off.
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Creditors bound by the IVA should no longer pursue you for those included debts, and collection activity is generally stopped while the IVA is in force.
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Creditors benefit from IVAs as well as you, as they usually get more money back than if you went bankrupt.
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...and in a bit more detail:
Basically it is a contract between you and your creditors, in order to reduce your monthly payments on unsecured debt such as personal loans, credit cards etc. to a more manageable level.
An IVA seeks to protect your family home and other assets like your car from your creditors. It is an alternative to bankruptcy.
You pay an agreed amount each month or week, based on what you can actually afford to pay.
You agree to pay this amount for a fixed amount of time, usually five years.
Once your IVA has been set up, your creditors will agree to freeze interest and will not be allowed to contact you about your debts.
This may help a letters, phone calls, text messages and all debt collection activities (including bailiffs) to stop.
About IVA
Typical factors that may make an IVA suitable:
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You owe money to two or more creditors
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You are struggling to keep up with repayments
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You have unsecured debts (such as loans, credit cards or overdrafts)
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You have a regular income and can afford a monthly payment
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You live in England, Wales or Northern Ireland
Suitability for an IVA depends on your personal financial circumstances and professional advice from a licensed Insolvency Practitioner.
How do I start an IVA?
You will firstly need to take the IVA test to find out if you could qualify for an IVA. An adviser will then work with you to determine your present financial situation. They will then draw up the proposal which is forwarded to your creditors, allowing you to get your finances back on track.
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