Individual
Voluntary Arrangement (IVA)
An IVA is a legal agreement drawn up between the person(s)
in debt (lets assume this is you), all creditors to
whom money is owed (banks, credit cards etc) and a Licensed
Insolvency Practitioner. It is a legal process by which
your unsecured creditors cannot pursue you for payment
of your debts outside of the agreement.
In an IVA you agree to pay a single, reduced, affordable,
monthly payment for a period between 3 and 5 years after
which the unpaid part of the debt is written off by
the creditors. The creditors are aware of this and are
in agreement with it.
Each creditor gets a share of the monthly payment,
usually in year 3 and year 5 of the arrangement, so
no payments are made to individual creditors on an ongoing
basis.
During the repayment period all interest charges are
frozen and all demands for money are stopped.
The arrangement is drawn up by the Licenced Insolvency
Practitioner who then administers the arrangement.
It's true...
This may sound too good to be true but it is the law
and creditors like it. Creditors are usually willing
to accept an IVA because it stops them spending more
money chasing debts that can never be repaid. It is
also in their interest to accept a reduced payment because
they not only recover some money but they derive tax
benefits by doing so.
An IVA takes about 6-8 weeks to set up.
Complete our Debt
Questionnaire and we will contact you once we have
considered your circumstances. |
