Reduce your debt with an Individual Voluntary Arrangement – IVA
An Individual Voluntary Arrangement, or IVA for short, is a negotiated solution available to those with a large amount of debt who are struggling to keep up repayments.
This situation may come about through unexpected redundancy, unemployment, divorce and separation, or any of a number of other changes in circumstances.
An IVA can secure agreement from your creditors to making a compromise arrangement by which they accept that they will never be repaid in full, and instead agree to an IVA which will provide repayment of a portion of what was owed. The normal process would involve the debtor taking IVA advice from a specialist insolvency practitioner, who would then liaise with the lenders and creditors to negotiate the best IVA agreement possible for their client.
Do you need IVA advice? Submit a financial advice enquiry or ring freephone 0800 678 5929
What can the best IVAs deliver for the debtor?
The best IVAs can not only cancel up to 60% of the client’s borrowings, but it is also sometimes possible to achieve a freeze on future interest charges as well. The insolvency practitioner can then offer further IVA advice to the client on repaying the remaining portion of the debt. IVAs normally arrange for 60 monthly repayments, so that the client will be debt-free after 5 years, although an IVA based on a once-off lump sum payment is also possible.
Once you have taken IVA advice and your IVA is in place, you will have the comfort of knowing that you now have one manageable debt which is possible much-reduced in comparison to your previous owings. You know that you will be debt-free in 60 months, you may have all interest frozen on your debt, and you can relax knowing that you are now protected from your creditors, and that creditor pressure has now stopped.
Who are eligible for IVAs?
IVAs are suitable to those with debts of over £15,000 to more than one creditor, and who have surplus income available that can be directed into repaying some of their debt.
Homeowners who arrange an IVA may be required to release equity from their home as part of their repayment plan.
Why do I need IVA advice?
An IVA is a legally binding agreement under the Insolvency Act 1986. An insolvency practitioner is required to give best IVA advice and broker the best IVA agreement that is possible with your creditors.
Every IVA is unique and individual, and only those who take IVA help from qualified professionals can be sure of putting in place the best IVAs tailored to their unique situations. One condition is that for IVAs to be set up, agreement must be obtained from 75% of all creditors involved. Specialists in best IVA advice have built up good contacts and trusted relationships with all the larger lenders and credit card companies, vastly increasing the likelihood that their proposal on your behalf will be accepted.
The best IVAs will take into account your employment status, income, outgoings, amount of unsecured debts, number of creditors, and personal situation.
How expensive are the set-up charges for IVAs, and IVA advice?
Fees for IVAs are set by those to whom you owe money, your creditors. The fees are included in your monthly repayment, so that you will receive no bill for the best IVA advice of your chosen insolvency practitioner.
Will I need ongoing IVA help?
IVAs are legally binding agreements, and during the 5-year course of the IVA your personal circumstances will be re-examined. For that reason, you may need IVA help several times, and with specialised insolvency practitioners, you have the comfort of knowing that the best IVA advice, at any time, is just a phone call away.
Do you believe you may require an IVA? Contact us now online with a financial advice enquiry or ring freephone 0800 678 5929 now.
