An Individual Voluntary Arrangement is a formal agreement between you and your creditors where you will come to an arrangement with them, to make reduced payments towards the total amount of your debt.
If you qualify for an IVA, we will refer you to a qualified Insolvency Practitioner. The IVA will usually last between 60 and 72 months and at the end of your IVA you will have a certain amount of debt written off and be debt free.
- A single affordable monthly payment.
- A fixed repayment period (usually no more than 60 months).
- An agreement that your creditors will freeze interest and stop any charges so your debt balance does not increase.
- Protection from further action by your creditors.
- On completion of your IVA your creditors legally write off any debt outstanding.
- If you own a home, you are unlikely to lose it as long as you comply with the terms of your proposal.
- No advertising in papers.
- Should the IVA fail, the debtor can still be made bankrupt.
- You may be required to introduce an element of your equity into the IVA, usually towards the end of the IVA.
- 75% of the creditors based on the value of debt have to agree to the IVA
- There are restrictions to certain types of expenditure.
- The Supervisor must be advised of any changes in personal circumstances arising during the IVA.
- Depending on the level of overtime or bonuses an individual receives, they may be expected to contribute an amount of this towards the IVA.