An IVA (Individual Voluntary Arrangement) is a formal agreement with your unsecured creditors to settle your debt over a fixed period – normally 5 years
If you are struggling to pay the debt that you owe, the IVA allows you to reduce all of the payments to your unsecured creditors and combine them into a single affordable amount. At the end of the Arrangement any debt that was included but is still outstanding is written off.
Want help to start an IVA? Give us a call (0800 088 7376) or complete the form below to speak to one of our experts
The IVA is a formal legally binding agreement so once in place your creditors are not allowed to add further interest or charges to your debts. They are also prevented from taking further action against you such as county court judgements, charging orders or a petition for your bankruptcy.
Generally speaking to start an IVA you will need to have unsecured debts of at least £8,000 and be able to pay at least £100 towards your debt each month (although in certain circumstances these figures could be lower). Although the standard length of an IVA is 5 years, it is possible to settle the agreement early if you are able to offer a lump sum to your creditors.
As well as the information found on this website the Government’s Insolvency Service has produced a useful guide to personal debt solutions which you might also find useful: “In Debt – Dealing with your creditors”.
The Money Advice Service (MAS) are an independent service set up by the Government to provide people with free advice about all aspects of personal finances. For help from MAS if you are struggling with debt please follow this link: MAS – Help if you are struggling with debt.
It is also recommended that you read this one page document produced by MAS entitled “Dealing with debt – 5 things you should know”.
Only a brief overview of the IVA solution is given here. For more details please see one of our dedicated websites:
If you decide to start an IVA we will complete a detailed Statement of your Financial Affairs with you to confirm your eligability. Given that we still believe that it is a suitable solution for you we will then pass your details over to one of our IVA Partners who will propose the Arrangement to your creditors on your behalf. For more information see: Apply for an Individual Voluntary Arrangement.
If you have completed your IVA you can now claim for mis sold PPI if you have not already done so. You can make the claims yourself if you wish. However you need to be aware that the banks may try to resist paying you the compensation you are due. To help you overcome these problems and get the money you are owed we offer a specialist claims service. For more information see: Help with claiming for PPI after an IVA