What is an IVA or Individual Voluntary Arrangement ?
An IVA, or Individual Voluntary Agreement, forms an agreement between you and your creditors to repay a portion of what you owe. This amount is calculated on what you can realistically afford to pay. The term of an IVA can last from 6 months to five years, after which you will be debt free, with any outstanding debt is legally written off. Once an agreement is formed, all interest and other charges are stopped. The first meeting with us is completely free of charge and you are under absolutely no obligation whatsoever. An IVA is an effective and discreet way of dealing with money problems.
IVA's have been in existence for over 20 years but although more people are getting more familiar with IVA's, it is still a relatively unheard of procedure used to solve personal debt problems.
An IVA overcomes most of the disadvantages normally associated with the informal Debt Repayment Plan. The main attraction is that an IVA offers a solution where you know the end date so you know exactly where you stand and when your debts will be gone.
Advantages of an IVA:
All interest and charges are stopped
One affordable monthly payment covers all of your debts
You know when the payment period finishes
Once completed you are legally debt-free
You are legally protected from your creditors
The process is discreet and will minimise future money problems
Disadvantages of an IVA
As with most options when you are in serious debt, an IVA does have some
relatively minor pitfalls:
If you own a home you may have to release some of your equity to help repay
creditors
Your credit rating can be weakened
You are unable to take out credit or any form of borrowing during the IVA
process
Is an IVA right for me ?
If you have any debt that you are unable to repay, then it is likely that an IVA is suitable. There are many other personal circumstances that will need to be considered, so we urge you to contact us as soon as possible.
