An IVA (Individual Voluntary Arrangement) helps you deal with debt problems without the need of further lending or having to declare yourself bankrupt. Providing you meet the terms of your IVA and make your agreed monthly repayments every month you will eventually become debt free.

To qualify for an IVA you have to have in excess of £15,000 of unsecured debts, owe money to two or more creditors, and be able to afford repayments of at least £200 per month. If you consider an IVA to be your best option you should then contact an insolvency practitioner who will negotiate with your creditors on your behalf.

To decide whether an IVA is appropriate for your circumstances you should take professional debt advice. We can help you with your decision and point you in the right direction.

Following negotiations with your creditors an amount of your debt will be written off. This could be as much as 80%. Interest on the remaining debt will also be frozen. You should bear in mind that an IVA will have an effect on your credit rating and you will not be able to borrow during the term of your IVA (usually 5 years).

After your IVA is finished your debt will be clear. This allows you to make a fresh start without losing your home or becoming bankrupt.

For more information and to see the range of options available to you depending upon your circumstances use our debt savings calculator or get in touch with us directly.

Categories: Debt