All about IVA’s

An IVA - individual voluntary arrangement is where you take professional debt advice to come to a formal agreement with your creditors to make reduced payments over a set period (normal 5 years) to settle the money you owe. It is often the case that with an IVA - individual voluntary arrangement your creditors will allow you to pay back much less than you actually owe (by as much as 75% in some cases) reducing your debt and allowing you to become debt free without facing bankruptcy.

Before applying for an IVA - individual voluntary arrangement it is worth taking professional debt advice as their may be other more suitable solutions to your debt problems.To qualify for an IVA - individual voluntary arrangement you will normally need to have at least £15,000 worth of debt split between at least 3 creditors and at least £200 a month in disposable income.

Once your debt advisor has established that an IVA - individual voluntary arrangement is the right solution for you they will ask for all of your financial details including the amount of money you owe and your monthly outgoings. They will then pass these to an insolvency practitioner who will prepare your case and will put it forward to the lenders along with an amount which he believes you can afford to pay each month.
If the lenders agree to your IVA - individual voluntary arrangement it will be passed and a formal agreement will be put in place.