IVA INFORMATION:
An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled. Due to its formal nature, an Individual Voluntary Arrangement - IVA has to be set up by a licensed professional called an Insolvency Practioner (IP)
Its Purpose?
It is a legally binding agreement between you and your creditors (people you owe money to). It helps those in financial difficulties to make a formal proposal to settle their debt.
What Are The Arrangements?
Monthly payments are based on an affordable disposable income. Once the final payment is made, any outstanding debt is legally written off. The arrangement can write off up to 65% of your debts (subject to your circumstances).
How does it work?
Debts are settled within a reasonable and fixed period of time (normally 5 years). Any interest and debt charges will be frozen and creditors will be prohibited from demanding additional payments.
Who Can Use An Individual Voluntary Arrangement (IVA)?
Anyone can consider an IVA to solve their debt problem. IVAs have been put in place for anyone, from your blue collar professional to Armed Forces personnel or members of the Police. Your ability to undertake an IVA is not defined by your job or profession.
Who Is Eligible For An IVA?
It will depend on your personal circumstances. Normally your personal debts must be above £15,000 and you should have 3 or more different creditors. You must also be able to offer a reasonable monthly payment to your creditors. This will vary depending on the debt. However, as a guide, you will usually need to be able to afford at least £200/mth.
