Typically, an Individual Voluntary Arrangement (IVA) is a type of debt management solution in which your debts can be repaid in a more affordable and controlled way. When a borrower is on the verge of going bankrupt or the current financial situation does not allow them to repay their debts in full, they can seek debt help solutions from financial institutions that are backed by the UK government. You will just have to pay the affordable amounts and the lenders will not chase you for the payments. If they do, they will have to deal legally through your IP. An IVA is a private legal agreement in between you, your IP, and the lenders. So, there is nobody else who will know about the IVA, unless they search on the public record of the Individual Insolvency Register. However, your name will be removed from the register after 3 years of completion of your IVA. With an IVA, you can have a better control over your debts and pay an affordable amount in a more manageable way to the creditor. IVA is available in the UK countries like England, Wales, & Northern Ireland, and it is not available in Scotland.
Submit A Completely Filled-In Application Online Form
A licensed IP will talk to you & understand your circumstances
The IP will work to sort out your debt issues with the creditors
IVA is probably one of the most common types of debt management services availed by most debtors, as they come with terms & conditions that are preferable to them & also, the creditors have at least some amount getting repaid legally. Here are a few benefits that are offered by the IVA debt help services.
The creditors who do not approve of the IVA arrangement are also liable to abide by the finalized terms
The creditors cannot chase you anymore until the IVA period & will have to deal legally with your insolvency practitioner
We do not charge any upfront fees or any other additional charges to fill the online application form with us
Protect your assets by arranging your family to buy your share of the net worth of your home or make extra payments
All the interest rates and other charges will be frozen on the debt amount that you owe to the lenders
Upon writing off most debts, you will have to pay affordable amounts to the creditors extended for max 5 years
An Individual Voluntary Arrangement (IVA) is a type of debt management solution in which your debts can be repaid in a more affordable and controlled way. You will have to repay affordable amounts in this period, and any money that you owe the creditors after this period will be written off. Even if 75% of your creditors agree to the IVA plan, it is applicable to all the creditors who do not agree with the arrangement also.
Many different debts can be included in IVA. Most of the time IVA includes unsecured loan debts, that mainly include – Personal loans, overdrafts, credit cards, store cards, Council tax arrears, Benefit arrears, utility bills, tax debts, etc. Although an IVA is not for secured loans, sometimes for mortgage loans, the mortgage along with the rent and other outgoing factors will be considered before an IVA is made. For home equity loans, at the final IVA year, the equity can be released from your property.
To set up an IVA, you will have to make sure that you really cannot afford the repayments, and seek help from a legally licensed insolvency practitioner (IP), who will talk to you about your current financial situation, debts, assets, income, credit record, and other relevant details. Once the IP understands your situation well, they will talk to your creditors about the issues and, will try to work on a solution that is amicable for both you and the creditors.
To be eligible for an Individual Voluntary Arrangement (IVA), your consolidated debt amount should not exceed a total of £50,000, and your financial situation along with your income shall not be sufficient to make all the repayments on time. Even if 75% of your creditors agree to the IVA plan, it is applicable to all the creditors who do not agree with the arrangement also. At the end of the IVA tenure, the remaining amount will be legally written off and the creditors cannot chase you for any more payments.
If you do not pay according to the IVA, there are chances that your credit rating may fall further, your assets may be confiscated, or the practitioner may make you go bankrupt. Also, there are chances that it may affect your employment also. So, it is important that you understand well about the pros & cons of IVA before getting into a final decision.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk