Individual Voluntary Arrangement
(England, Wales & Northern Ireland only)
An Individual Voluntary Arrangement known as an IVA is a legally binding agreement for people who owe more than £15,000 of unsecured debt and help you to become debt free. An IVA is a debt solution arrangement that is supervised by a Licensed Insolvency Practitioner and would suit people who are threatened with bankruptcy or insolvency. An affordable monthly contribution is agreed between you and the Insolvency Practitioner. An I.V.A usually lasts around a 5 year period and protects you from any of your creditors taking any enforcement against you.
Advantages of an IVA
- You will not automatically lose your house or other assets, although the creditors will usually want some of the equity in your house.
- Interest is frozen
- If you enter into an I.V.A you will receive ongoing support from your Insolvency Practitioner.
- It is not made public
- A Sole Trader or Partnership can continue to trade and generate income towards repayment to creditors.
Disadvantages of an IVA
- If you fail to adhere to the terms of the IVA, your assets and home may be at risk
- If an IVA fails because you do not maintain the agreement, your creditors can take further action and you could be at risk of bankruptcy
- Your credit rating will be effected by entering into an IVA.
Contact Debt Advisory Service
For more information on Individual Voluntary Arrangement (IVA's), please contact us for debt advice today on 08000 191 278, Email us at enquiries@debtadvisoryservice.co.uk or simply fill out our Debt Advice Enquiry Form.
