IVA Information

IVA - Individual Voluntary Arrangement

Debt Solutions

Other Information

Pros Of IVA

Debt free in 60 months
An IVA lasts five years, all outstanding debt is written off.

Interest and Charges will be stopped
Under an IVA, your creditors are not permitted to add any interest or charges to the debt by law.

Single Monthly Payment
At the beginning of the IVA, your monthly payments are agreed with your creditors, and no further payments can be requested from them.  The money you pay to us is distributed to your creditors on your behalf.

Credit Rating
Whilst on an IVA it is not possible to obtain further credit, although it is possible to obtain a mortgage while on an IVA.  Once the IVA is completed, your credit rating starts to repair itself.

Fixed Legally Binding Agreement
Once agreed, the IVA is legally binding to all creditors.  This means that they are not able to amend the arrangement or make demands for payments.

Protection From Court Action
Once an IVA Interim Order is in place, your creditors are not able to take further legal action against you so long as you continue to make payments towards your IVA.

Privacy
An IVA is a private agreement between you and your creditors.  There is no publicity.

Professional Status
Your professional status, if you hold one, remains unaffected.  An IVA will not affect your job even if you are a company director or a member of the police force or the armed forces.

Cons of IVA

• Equity Release
  There is a possibility that if there is any equity in any assets held by you at the end of the term of the IVA, you may be asked to release funds to clear any debts uncleared, as part of the IVA agreement.

• Minimum Level of Debt
  This is normally £15,000.00.  If your borrowing is considerably lower than this amount, your creditors will not enter in to an IVA with you.  Also the minimum payments start at £200.00 per month.

• No Unsecured Borrowing
  No Unsecured Borrowing is allowed during the arrangement while you are in an IVA, you will not be able to use your store or credit cards. These must be cut up. In addition, you will normally not be allowed to borrow any more money until you have successfully completed your arrangement. It may however be possible to change an existing mortgage or take a new one while you are in an IVA.