Individual Voluntary Arrangements (IVA's)
An IVA may suit you if you have debts of over £20,000
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding contract which is drawn up by an Insolvency Practitioner (IP) and allows you to make a formal proposal for payment to your creditors normally over 60 months (5 years). They are particularly beneficial if you have over £20,000 of debt and can afford payments of over £250 each month.
Your IVA will be administered by a fully qualified Insolvency Practitioner (IP) who will agree the terms of the IVA with your creditors and manage the payments on your behalf.
The reduced repayments are usually made over 5 years during which time you will be charged no further interest and receive no further contact from your creditors. Depending on the way the IVA is agreed, at the end of the repayment term, any remaining balance will be written off which can be as much as 75% of your debt.
