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What is an Individual Voluntary Arrangement/ IVA?

What is an Individual Voluntary Arrangement/ IVA?


An Individual Voluntary Arrangement/ IVA is a legally binding agreement between you and your creditors. It will allow you to make reduced payments towards the total amount of your debt. This allows you to pay off a percentage of your debt. After a period of usually 5 years the remainder of debt is cleared.

Once the IVA agreement has been set up, by a licensed professional, your creditors must stop all further interest and charges on your debts. All letters and phone calls from the people you owe money to should soon stop. Creditors will stop demanding additional payments. Once the 60 month agreement has ended, and you have kept to the arrangement all outstanding debt is written off.

Why should I enter into an Individual Voluntary Arrangement/ IVA?


An Individual Voluntary Arrangement/ IVA is legally binding. It helps people in financial difficulties to make a fresh start and begin to settle their debt. The advantage of an IVA is that you'll only be making one affordable monthly payment towards your debt and will no longer have to deal with creditors.

Monthly payments are based on an affordable disposable income. Once the final payment is made, all remaining debt is legally written off. You could write off the majority of your debt, subject to your circumstances.

Is an Individual Voluntary Arrangement/ IVA right for me?


To find out if an Individual Voluntary Arrangement/ IVA is the right option, you will be asked questions regarding your current financial situation. Based on the information given, a repayment amount will be agreed to help you begin to pay off your debts. The IVA will consist of one affordable monthly payment, over a period of usually 60 months. This payment is based on earnings minus expenses.

It is very important not to confuse an Individual Voluntary Arrangement/ IVA with a Debt Management Plan. This type of debt help is not legally binding and cannot guarantee that interest and charges on your debts will be frozen.