What is an IVA?
An Individual Voluntary Arrangement, or IVA, will allow you to repay what you can realistically afford to your creditors, lowering your monthly payments, freezing your interest rates and ending the stress and collection activity from your creditors. IVA’s typically last five years and at the end of that term your debts will be cleared without bankruptcy or any other legal action.
An IVA is a legally binding agreement between you and your creditors, and as such offers more protections than other debt solutions such as a Debt Management Plan. Unlike bankruptcy, if you own a home, you will not be forced to sell your house or put other personal property at risk after entering into an IVA.
Advantages of an IVA
Avoid Bankruptcy
Bankruptcy is a matter of public record and notifications of bankruptcies are published in newspapers. An IVA is an arrangement between you and your creditors; no one else needs to know.
Keep Your Home
In bankruptcy you may be forced to sell your home and move house. You will be able to keep your home in an IVA.
Keep Your Job
With many people's professions, if you go bankrupt you lose your job. But people from any profession can enter into an IVA.
Stop Collection Activity
An IVA will end collection calls, halt CCJ’s and stop bailiffs from visiting your home. Basically, after entering into an IVA the burden of dealing with your debts is removed.
Bankruptcy Stays with You for Life
An IVA will disappear from your credit record one year after completion and you may not have to disclose the fact that you've entered into an IVA when applying for future credit. If you go bankrupt you will always have to inform future creditors of your bankruptcy for the rest of your life.
How Long will an IVA last?
An IVA normally lasts for 5 years or 60 months, after which all the remaining debt is cleared off.
How do i apply?
There are certain criteria a client has to meet for an IVA. This includes a threashold on the amount of debt they have and to how many creditors they owe money. As an IVA is a formal contract before we can put any client into an IVA, we would need to complete a FREE Financial Review.To apply click here
