What is an IVA?

IVA's - Individual Voluntary Arrangements - like many debt solutions can be difficult to understand. They may or may not be suitable for you and your circumstances, however you will be given all the options open to you so that you can make an informed choice.

An IVA is a legally binding arrangement with your creditors which allows you a fixed period of time to repay your debts in affordable monthly payments, normally over 5 years.  Your IVA proposals are put forward to creditors in the form of a document called a 'proposal'. The Proposal is lodged at Court and your creditors are given a copy. Any assets which you have which may be at risk of reposession (eg house or vehicle) can be protected whilst the Proposal is in discussion via an Interim Court Order.

A meeting of the creditors is held at which they are able to vote on whether to accept, alter or reject your proposals. Provided you can demonstrate a genuine attempt to repay as much of your debt as you can afford, it is likely your Proposal will be accepted.

Once your IVA is accepted all interest and charges on the accounts are frozen, and you make a single monthly payment to cover all debts within the IVA. After 5 years the remaining debt can either be paid off using any equity you may have in your property, or if this is not possible, up to a further 12 months payments can be agreed. After this further 12 months any remaining outstanding debt is written off.

IVA' are usually more suitable if you have in excess of £17,000 of debt, but this isn't always the case.

For a chat about exactly whats right for you, call us today.

CALL  01226 323132