What is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding arrangement between you and your creditors, supervised by an insolvency practitioner.
You make one affordable monthly payment during a fixed time period - usually 5 years. If you adhere to the terms of the arrangement your unaffordable debt will be written off.
The UK Government's 1986 Insolvency Act approved this procedure as a way of paying off debts with legitimate protection from creditors. Remember - it's your legal right to use an IVA in accordance with your personal circumstances.
IVAs can:
- Reduce debt
- Stop harassment and court action
- Make one affordable monthly payment
- Protect assets such as your property and car
- Freeze interest and stop charges on your accounts
- Leave you more cash for everyday needs
An Individual Voluntary Arrangement (IVA) may help if you have:
- Over £15,000 of unsecured debt
- More than three unsecured creditors
- CCJs against you (or if you've been threatened by court action or bailiff visit)
- Credit and store cards, personal loans, overdrafts or mail order catalogue debts
Please note: the undertaking of an IVA is not the same as a bankruptcy procedure.
If you're considering an Individual Voluntary Arrangement, view the R3 publication: 'Is a voluntary arrangement right for me'?
R3 - The Association of Business Recovery Professionals - is the leading professional association for insolvency, business recovery and turnaround specialists in the UK.
You can also view the original article at r3.org.uk.
What next?
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- Calling 0845 1120 570
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