One of the major characteristics of an Individual Voluntary Arrangement (IVA) is that the contract generally only lasts for a repayment period of 60 months. However an IVA is a very flexible financial instrument and the length of contract can vary significantly :-
The general rule of thumb with IVA repayment periods is that the overall financial return to the creditors across the period of the IVA must be better than they would expect to achieve in a bankruptcy situation. The IVA repayment period can be influenced by many factors. For instance if the debtor is due to retire in 3 years time but can afford a greater monthly financial contribution for this shorter period than the 5 year norm then an IVA can be approved over the 3 year period. Likewise a debtor suffering severe financial hardship during an IVA may seek to extend the IVA repayment period, for instance up to 72 months, rather than terminate the IVA and apply for bankruptcy.
Most people with debt problems have some unique circumstances which influence their financial situation. If you are contemplating an IVA and seek confirmation that the type of IVA contract you are contemplating is appropriate then complete our enquiry form or contact us on free phone 0800 043 5 043 for an unbiased opinion.
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Total unsecured debt : £4000