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What is an IVA?
An IVA is a legal contract between you and your creditors. It enables you to cut your debts to an affordable level and clear them over a fixed period. An IVA ensures that your home is protected, your job is not at risk, and your credit rating is not demolished. You can even take out a fresh mortgage while in an IVA. What’s more, it is a totally private arrangement – nobody needs to know about it apart from you, your advisors and your creditors.
You make one single manageable monthly payment, based on your budget, for 3-5 years. After that the remaining debt is wiped clean, leaving you completely debt-free. This means that an IVA can write off up to 75% of your debts! This all might sound too good to be true, and in many ways it is very good indeed.
However, under the terms of the agreement you undertake to contribute as much as possible within your budget.
So in reality, an IVA presents an opportunity for you to pay whatever as you can in a manageable way – a way you can afford.
Most Frequently Asked Questions about IVA
What is an IVA?
Pros and Cons of an IVA
I do Qualify for an IVA - but is it better than bankruptcy?
What is an IVA going to cost?
What is the IVA process like?
Click here to read more FAQ about IVA
More on an IVA
So, an IVA could be the ideal solution to your debt problem. Three quarters of your creditors need to agree to the terms of the IVA though. That percentage is decided by proportion of debt rather than by the number of creditors that you have. After discussing your debt solution options with a specialist IVA advisor, you'll have the confidence of knowing that your debt is being handled in the best way, by the best team for the job.
IVA's are managed by a licensed Insolvency Practitioner. In order to make a full, detailed proposal to your creditors, in the hope of gaining their support, you'll need to give them as many payslips, bills and bank statements as you can. Then they'll work out exactly what you can afford to pay towards your debt each month. When you're confident and satisfied with their work, the Insolvency Practitioner will talk through the IVA proposal with your creditors and come to an agreement. When you've completed the repayment period successfully, any remaining debt will be written off and your creditors will have no more claim against you.
The IVA application can be a difficult process. It involves a number of different parties and dealing with them all can take quite a while. In this time, your Insolvency Practitioner will draw up the IVA proposal, complete all of the paperwork, get it signed off and sent out. A lot of the work will actually be done on your behalf though. Once you've gone over your debt problem and given your Insolvency Practitioner the right paperwork to back up the claim, you can rest assured that a dedicated debt professional is managing the situation. You just have to keep up with those reasonable, affordable monthly repayments. |
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Do you qualify for an IVA? |
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