An Individual Voluntary Arrangement (IVA) is a government debt solution to help people who have debts of over £15,000. If you can afford a minimum monthly payment of £200 then an IVA could be the solution for you. An IVA is a formal agreement between you and your creditors which enables you to make a formal proposal to settle your debts. Over a period of 5 years your monthly payments will help pay towards your debts, at the end of the fixed term any remaining debts are written off by your creditors and you will be debt free.
One of our experienced Debt Advisors will look at your income and expenditure to help you establish an affordable monthly payment which will then be paid to your creditors. One of our licensed Insolvency Practitioners (IP) will be appointed to handle your case and will prepare a proposal to your creditors containing your repayment plan.
What happens next?
Once the debtor has confirmed that the proposal is correct it will then be sent to your creditors who will consider whether to vote in favour of the proposal. A creditors meeting is then held shortly after the proposal is made, meetings are usually done via post or fax. The debtor is not required to attend a meeting unless their debts have been incurred during commercial transactions i.e. business debts in which case they may be required to attend. Once a final decision has been made by all creditors the IP will report this to the debtor, creditors and the court.
Once the IVA has been approved you have entered a legally binding contract and will start paying your monthly payments usually over a 60 month period, any changes in circumstances should be reported to the IP immediately.
The IVA will then be reviewed by the IP on a yearly basis.
In the right circumstances an IVA is a safe and practical method of becoming debt free and ridding yourself of debt related stresses.
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