An Individual Voluntary Arrangement (IVA) is a legal process for people who have unsecured debts of £15,000.00 or over. It allows a formal proposal to be made on your behalf to your creditors, to settle your debt within a reasonable and fixed period of time (normally 5 years). Once the proposal has been accepted no further interest or charges are added to the debt and creditors will be prohibited from demanding additional payments.
An IVA
Reduces debt by up to 75%. You only pay what you can afford after paying out your essential monthly bills.
Reduces repayment time. In 60 months you will be debt free, and the remainder of your debt will be written off.
Stops charges and interest. The amount you owe will be reduced by each monthly installment made.
Stops creditor calls and letters. Creditors are not permitted to contact you once you have started an IVA.
Stops court action. An IVA can halt bankruptcy proceedings and bailiff visits.
