IVA - Individual Voluntary Arrangements
What is an IVA
An Individual Voluntary Arrangement (IVA) is a formal debt solution that allows people with a serious debt problem, a chance to repay to their unsecured creditors only what they can afford and acts as an alternative to bankruptcy.
An IVA offers debt help to anyone who has debts of £10,000 or more, who is experiencing problems maintaining their personal financial commitments.
Receiving debt help through an IVA will reduce your financial burden by reducing your monthly debt repayments to an affordable level, whilst offering you the potential debt forgiveness of any unpaid debts at the successful conclusion of your IVA.
An IVA does this by providing you with a legally binding agreement that allows you to repay a reduced percentage of your original debt whilst, at the same time, protecting your assets such as your home.
IVA's are designed to help you with all types of unsecured debt problems, including problems you experience with paying back bank loans, credit cards, store cards, bank overdrafts and payday loans.
On the successful application of an IVA, and as part of an Individual Voluntary Arrangements legally binding terms and conditions, the interest on all debts included in the IVA must be frozen by the creditors, along with all late payment charges. This is particularly beneficial to cases where you have accrued large credits card or store card debts or have multiple payday loans.
How can an IVA help me
What should I be aware of with an IVA
How long does an IVA last
For tenants, an IVA has a fixed time period, normally 5 years, after which the IVA is completed. Any outstanding unsecured debts still remaining at the end of the Individual Voluntary Arrangements are legally written off leaving the applicant legally "DEBT FREE"
For homeowners with equity in their property, it's slightly different. Your IVA payments will still be based on affordability, but your IVA will have an 'equity clause' added, outlining the conditions under which you will be required to introduce some of your equity at the end of your arrangement. If you have equity but can't release it you will be expected to add 12 payments to your IVA's original term, after which your outstanding unsecured debts will be legally written off.
How do I apply for an IVA
Talk to the experts at IVA.org. We've already helped hundreds of people successfully apply for an Individual Voluntary Arrangement and we are waiting to help you right now. We will guide you through the whole IVA application process, making sure you receive the right IVA advice on all your debt solutions before you commit to an Individual Voluntary Arrangement.
Our advisers are friendly, non-judgemental and extremely experienced in helping people come to understand the IVA debt solution.
Give our IVA helpline a call...
If you simply want to have a chat about your options, or would like to ask a question about your solution. We invite you to call our dedicated freephone IVA helpline at a time that suits you on.
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Individual Voluntary Arrangement Summary
Your Individual Voluntary Arrangement will allow you to reduce your normal monthly debt repayments to a single affordable monthly payment, including your credit cards and payday loans.
Your IVA will give you legal protection from your creditors, whilst you only repay what you can afford, giving you peace of mind and, once the IVA is agreed with your creditors, there will be no more CCJs and no bailiff visits.
Unlike an open-ended Debt Management Plan, your Individual Voluntary Arrangement will have a fixed time frame which is normally 5 years, giving you the assurance that there will be light at the end of the tunnel for your debt problem.
Once your IVA has been agreed by your creditors and, if you're a homeowner, after you have fulfilled your obligations under the IVA equity clause on the successful completion of your IVA, you're unsecured debts will be considered legally satisfied and you will be "DEBT FREE".
As part of the IVA process your IVA will be recorded on the Insolvency Register, a public record listing all the Bankruptcies Debt Relief Orders and IVAs in England, Wales and Northern Ireland. However, despite this, an IVA is often considered a more discrete solution than bankruptcy because it is not mentioned in the press.
Your IVA will give structure to your financial budget by helping you account for all your personal incomings and outgoings. Managing your own personal finances by keeping account of your financial position on a monthly basis will help rebuild your confidence in how to maintain your personal finances.
IVA.org offers helpful and practical IVA advice on the Individual Voluntary Arrangement debt solution. Discover if an IVA is the suitable solution for your debt problems