What is an Individual Voluntary Arrangement?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors. It’s a way to deal with your debts as an alternative solution to bankruptcy.
You make affordable monthly payments to your Supervisor (who oversees your IVA) over a fixed period of time, with the remaining balance of debt being written-off upon completion of your IVA.
All interest and charges are frozen, and payment demands from your creditors cease.
An IVA can give you more control of your assets than bankruptcy.
For more information and to see if an IVA is right for you, contact us.
An IVA is a Legal, Binding Agreement Between You & Your Creditors'.
An Individual Voluntary Arrangement replaces all your current payments (to unsecured creditors’) with one affordable payment, usually paid over a five year period.
The Individual Voluntary Arrangement normally stays on your credit history for one year after your IVA ends.
Your property should be protected as part of the agreement.
At the end of the Individual Voluntary Arrangement term any unpaid debt is written off as part of the agreement and you have a fresh start.
Any calls from creditors’ can be referred to us.
Once your proposals have been finalised a meeting of creditors’ will be called.
We would liaise directly with your creditors’ and make distributions to creditors’ directly.
At that meeting it will be necessary for in excess of 75% of the voting creditors’ to approve the proposals for them to be accepted.
We will work together with you to draft your proposals to creditors’.
IVAs are most suited to individuals whose total unsecured debt is at least £15,000.
An Individual Voluntary Arrangement can only be done through a Licensed Insolvency Practitioner.
The amount paid to creditors’ is split proportionally, depending upon the amounts due to each of the creditors’.
In practice, creditors’ are unlikely to attend the meeting and the voting is done by correspondence.