A brief explanation of what an Individual Voluntary Arrangement is and how they work can be found below.
An IVA or Individual Voluntary Arrangement is a new legally binding agreement between you and your creditors which replaces all of your current unsecured credit agreements. Under the terms of the IVA your debts are consolidated down into one single monthly payment to be paid for a fixed period of time. At the end of the IVA all the remaining debt is written off by the creditors, leaving you free of debt.
While individual cases will differ, generally to qualify for an IVA you must -
Generally the IVA repayments will be made for a period of up to sixty months (five years), although they can last longer in certain circumstances – for instance if you have had a payment break. There is however a large amount of flexibility and so the length of an IVA can vary significantly from case to case.
If you are having debt problems then the advantages of an IVA include that -
Individual Voluntary Arrangements can have some disadvantages which should be considered before entering into any agreement. These disadvantages include -
If you are having problems with debt then the first thing you should do is to speak to an specialist IVA debt advisor such as ourselves. There are many organisations such as Money Advice Service that are able to discuss your debt problems with you and suggest the best way to overcome them. In most cases this advice will be offered free of charge. Should an IVA be the best option for you then your case will be referred to an Insolvency Practitioner such as ourselves. Legally only a Licensed Insolvency Practitioner is authorised to prepare and manage an IVA.
For a more in-depth look at IVA's please continue to browse the rest of our site. If you have any questions relating to Individual Voluntary Arrangements or personal debt problems in general then please call us today on freephone 0800 043 5043 or alternatively email email@example.com. A full list of ways in which we can be contacted can be found on our contact us page.
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Total unsecured debt : £4000