You are protected from legal action by your creditors
Your creditors are legally not allowed to contact you
Interest payments are stopped
No need to go bankrupt
You keep your house and car
You will be legally free from debt on completion of the IVA
An Individual Voluntary Arrangement (IVA) is an agreement between you and your creditors which was introduced by the Government as part of the Insolvency Act (1986).
An IVA is a proposal presented to your creditors setting out how you are going to repay your debts. The proposal will be created for you by an IVA specialist. The proposal also has to be supported by an Insolvency Practitioner (someone licensed under the insolvency act) who nominates you to the creditors supporting your application for this solution.
An IVA only requires you to pay back what you can ‘reasonably afford’ each month, usually over a period of 5 years. Once you have made the final payment, any remaining debt will be written off by your creditors.
The IVA is legally binding which means that you are protected from your creditors, who cannot change their minds once they have agreed. Part of the agreement is that the creditors are not allowed to contact you and cannot bring any further action against you as long as you maintain your reduced monthly payment. You will not have any contact with your creditors and should you have any problems or concerns, the Insolvency Practitioner will be there to talk to your creditors on your behalf and to support you throughout the term of the IVA. This solution will allow you to avoid Bankruptcy which should only be considered in exceptional circumstances.
IVAs are not guaranteed to be accepted as 75% of the creditors need to agree to the terms of the proposal and not everyone is eligible.
To find out if you are eligible or to discuss the IVA process further call us for free advice on 0800 000000 or 0161 000000 to speak to one of our experienced advisors.
Alternatively, if you would prefer for us to call you back then simply complete the quick Free Advice Form and one of our friendly staff will call you back.
