IVA-Individual Voluntary Agreement

IVA-Individual Voluntary Agreement

An IVA can reduce your outgoings and lead to a substantial part of your debt being written-off.



• Individual Voluntary Arrangement (IVA).

• A legal process for UK residents (excluding Scotland - see trust deeds)with a significant debt problem (normally over £25,000).
• On agreement your creditors accept a reduced offer of repayment in full and final settlement of the debt.
• Payments are normally made over a 5 year period, following which the remainder of your debt is written off.
• All interest and charges on your account are frozen.
• Your account is administered by a fully qualified, licensed insolvency practitioner, who takes responsibility for liasing with your creditors and distributing funds on your behalf.
• If you own your own home you maybe required to release any equity in your home. This is normally by way of a mortgage or loan secured on it or an extension of the IVA period.
• We perform a confidential review of your circumstances to
  see whether you are eligible.
• For further information on an IVA or other insolvency services
  please do not hesitate in contacting us.
  
  Individual Voluntary Arrangement (IVA) definition: An IVA is a formal legally binding agreement between an individual who is unable to pay their creditors and a licensed Insolvency Practitioner. The Insolvency Practitioner will put together a form of proposals to the Creditors for approval and administer the IVA.

IVA Dos and Don’ts

DO Remember, an Individual Voluntary Arrangement (IVA) is be legally binding. As long as you keep up the repayments, when the term of your agreement is finished, you will be free from these debts regardless of how much has been paid off. During the period of your arrangement your financial situation will be reviewed regularly to see if there has been any change in your circumstances.

DO make sure your IVA offers a better return to creditors than they’d get if they were to petition for your bankruptcy.

DO be honest about what assets and earnings you have/will make. False declarations can affect the success of the IVA.

DO NOT confuse an Individual Voluntary Arrangement (IVA) with an Informal Debt Management Plan, which is not legally binding.

Get free advice for IVA -

Please fill the application form for IVA Advice.

When IVA is Suitable

An IVA is suitable when someone is unable to pay off their debts but does not want to file for bankruptcy. It can be an attractive option to all parties including the creditors as often it presents for them a better result than under bankruptcy.

There are certain criteria however that are required for an IVA to have a good chance of success. It is recommended that a debtor speaks to a Clear Start advisor to get a better understanding of what these are. The following are some simple guidelines for what can work: