IVA Information

IVA - Individual Voluntary Arrangement

Debt Solutions

Other Information

It might be worth entering into an IVA as:

• Up to 75% of your total debt may be written off.
• In 60 months you can be debt free, the rest is written off.
• An IVA stops Interest and Charges.
• An IVA stops creditor call and correspondence.
• An IVA stops any pending Court action

IVA Versus Bankruptcy

• If you owe over £15,000.00 an IVA is a quick and simple alternative to bankruptcy.
• If you are declared bankrupt you will lose all future assets, such as inheritances, insurance pay outs, any equity in property and possible pension income.  With an IVA you will retain any property held, as well as any future payouts once the IVA is completed.
• Bankruptcy is always advertised in your local paper and in the London Gazette.  There is no publicity with an IVA.
• Your bank/building society, landlord and all creditors are informed straight away if you are declared bankrupt, with an IVA, your landlord or employers are not told unless you owe them money.
• There is no court appearance involved in an IVA.

IVA versus Debt Management

Amount paid back:

• Debt has to be paid back in full under a Debt Management Programme.
• Up to 75% of debt can be written off under an IVA

Length of Arrangement:

• A Debt Management Programme lasts as long as it takes to clear all debts in full.
• An IVA normally last 60 months.

Minimum amount owed and number of creditors:

• Debt Management Programme, £2000.00 unsecured debt and two creditors.
• IVA, £15,000.00 unsecured debt and three creditors.

Minimum Payments:

• On a Debt Management Programme the minimum payment is £80.00
• On an IVA, the minimum payment is £200.00