We look at the benefits and disadvantages of an IVA.
And what you need to do to get an IVA to deal with your debts.
Is an IVA right for you?
What is an IVA?
An Individual Voluntary Arrangement is a formal and legally binding agreement between you and your creditors.
It allows you to pay a monthly payment towards your debts, but at a level you can afford rather than the amount your creditors are asking for.
You agree to pay this monthly amount for a set period of time – usually 5 or 6 years.
After this set period of time any remaining debt will be written off.
It provides both parties with certain legal protections whilst you solve your debt problems.
Once the agreement is in place your creditors must stop all further interest and charges on your debts.
All letters and phone calls from your creditors in relation to your debts should then cease.
Once the 60 months have ended (in some cases 72 months), and you have kept to the arrangement any outstanding debt included in the IVA is written off.
IVAs are not available if you live in Scotland. In Scotland, a protected trust deed is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it.
Benefits of an IVA
- Make one affordable monthly repayment.
- Reduce your monthly outgoings inline with what you can afford.
- Protects your home from creditors if you are a homeowner.
- Freezes interest and charges on your debts
- Stop letters and phone calls from your creditors.
- Stops debt collectors and bailiffs from calling you.
- Prevents further legal action and attachment of earnings
What do I need to get an IVA?
- You must have two or more creditors.
- You must be struggling with payments to your debts
- You must owe more than £5000 of unsecured debt (credit cards, loans, overdrafts etc.)
- UK citizen (IVA specific for England, Wales and Northern Ireland)
Need debt advice?
Our panel of specialists can quickly advise you of your options if you are considering an IVA. Simply call the team on 0800 36 88 133.
Alternatively take the online IVA test and see if an IVA is right for you.
How to apply for an IVA?
1: Your first step should be to check if an IVA is right for you.
You can call our free helpline on 0800 36 88 133 to speak with one of our experts, or use our online "debt test", or webchat anonymously.
If an IVA is right for you, our Insolvency Practitioners will prepare an IVA proposal for your creditors.
Because our IVA's are realistic, over 95% get accepted by creditors. That means you get affordable payments, interest on debts stopped and creditor protection.
We do not charge you a fee for giving you IVA advice or for setting up your IVA.
More about IVA's