An IVA is an alternative to bankruptcy. It is a legally binding agreement between you and your creditors. It enables you to repay your creditors at an amount you have shown you can afford for a fixed period of time (usually five years). At the end of this period, any monies still outstanding are legally written off, with your creditor's' approval, leaving you debt free and able to make a fresh start.

On approval of the Individual Voluntary Arrangement all interest and charges stop. Creditors are not allowed to pursue you with phone calls, demand letters and any legal action relating to your unsecured debts. In effect, an IVA will provide you with the knowledge that you have just one affordable payment to make each month.

ADVANTAGES OF AN IVA

• You will only pay what you can afford
• You will not pay any fees
• Your creditors will stop hassling you
• Up to 75% of your debts will be written off
• Interest will be frozen
• One affordable single monthly payment will replace all your unsecured debt payments

DISADVANTAGES OF AN IVA

• In order for creditors to agree to an IVA you may have to propose to pay more than you would have done if you were made bankrupt

You need to be confident you will be able to manage the payments you agree to make to the IVA because if the arrangement fails your creditors will be able to reclaim the whole of their outstanding debts and interest and costs as they will no longer be bound by the arrangement.

Is an IVA right for you?

Generally to qualify for an IVA you must have minimum debts of £15000 and owe money to at least 3 different creditors. In addition you must have a surplus monthly income of £250. If you meet the entrance criteria, then you can make a formal application. This is a two-part procedure. Part one involves us putting together your proposal for you.

Part two involves us negotiating this proposal with your creditors on your behalf. Look at our chart (click here) and compare the options for yourself. Alternatively contact us today for a free confidential assessment of your circumstances.

Will my home be safe?

When you enter an IVA your home will be protected from being sold. Usually it will be a requirement of the IVA that in the 4th year of the arrangement you realise some equity from your home by arranging a remortgage or further advance. Remember that this amount will only be what you can afford and in many instances once this amount has been paid into the arrangement the arrangement will then cease and you will be discharged from any remaining debt.

If you have difficulties in obtaining refinance then the IVA can be varied with the agreement of creditors. This may mean that creditors will accept a reduced amount if that is all you can afford or creditors may agree that the arrangement shall be extended for up to 12 months and income contributions be paid in place of obtaining the remortgage

Will I have to pay any Fees?

No. All fees and costs of the IVA are taken from the contribution you pay each month, which are agreed by creditors at the meeting of creditors.

How much do I pay each month?

Your contribution is calculated by completing an income and expenditure statement. After we have allowed for all your essential monthly expenditure we will agree a contribution that is affordable to you. A standing order will then be set up and you will pay your contribution each month into your IVA account. Remember this will replace all your unsecured debt payments.

Is an IVA advertised?

No. Remember an IVA is a private legally binding agreement between you and your creditors and as a result is not advertised. Bankruptcy, however, is advertised in your local paper which many people find extremely embarrassing.

Phone today or apply on line to see if you qualify for an IVA and take your first steps to a debt free future.