IVA – What is an IVA? (Individual Voluntary Arrangement) and how can it help you?

An IVA is a government back scheme that is an alternative solution to avoid bankruptcy proceedings.

This solution is suited to those who are in employment and who have debts in excess of £15,000 and usually last for 5 years (60 months) and provides a ‘light at the end of the tunnel’ solution for clearing your debts within a set time period.

A legally binding agreement with your creditors

An IVA is a legally binding agreement with your creditors (the people or companies you owe money to) to pay a set single monthly sum over the period of the IVA to settle and clear your debts. When you have agreed to an IVA and have committed then you will become completely debt free in only 60 months.

Your creditors agree to wipe out the debts you can not afford to pay and to make a settlement. They also agree not to chase you for payment and will leave you alone when you are under the IVA (Individual Voluntary Agreement).

The role of the IVA provider

Your IVA provider will deal directly with your creditors and will handle all the negotiations upon your behalf and will ensure that your monthly debt repayments are lowered to a more affordable and manageable amount.

Other debt free options

You may find that a debt management plan is a more suitable option. However, we can advise you personally on the best option to suit your needs and circumstances.

Clearing your debts with an IVA

It’s important to note that the sooner you act, the more positive your situation will be and the more we will be able to help you.

Best Wishes, Susan.

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