IVA Information
IVA stands for Individual Voluntary Arrangement. It is a legally binding contract between the debtor and the creditor. They were introduced in 1986 as part of government legislation, which offers those who are struggling with large amount of debt with a bankruptcy alternative.
With an IVA, you are legally protected from any further action from your creditors. You commit to making set monthly payments for an average of 60 months, at the end of this period you will be free from any unpaid debt.
You only make monthly payments which are affordable to you after your living expenses have been deducted. This should relieve any pressure that you may have in paying your priority debts.
An IVA is best suited to those who have a stable income, multiple creditors and over £12,000 worth of debt. If you fit the IVA criteria, bar the debt level, then you may be suited to a debt management plan. Like an IVA it allows you to make reduced payments to your creditors and interest and charges on the debt may be frozen. Although it is an informal agreement and does not offer the benefit to have any amount of your debt written off.
If you do have high levels of debt and are facing the possibility of going through the bankruptcy process, an IVA could be a more suitable alternative. If you own your own home then there is a strong chance that you could lose it during bankruptcy, but with an IVA you can exclude your home from the proposal. There are additional long-term implications which are avoided with an IVA. To find out more IVA information, please get in touch with the One Advice IVA team on 0800 048 1752.
IVA Advice Guide
One Advice have put together an IVA Advice Guide which offers an array of IVA information. Topics include:
- IVA Arrangement – Do you qualify for an IVA? Arrangements for the IVA proposal to be put forward to your unsecured creditors can only happen if you are suitable for an IVA. This IVA criteria includes…
- IVA and Your Debt – An IVA can cover most of your unsecured debt. However, there are certain debts which cannot be included in your IVA proposal, such as…
- Insolvency Register – The Insolvency Register holds the details of all IVA and bankruptcy orders passed in the UK. Details about the register can be found at the Government Insolvency Service website…
If you think that you are eligible for an IVA or you just want more IVA information, contact the One Advice IVA team on freephone 0800 048 1752. We will be able to offer you free IVA advice as well as advise on a number of other possible debt solutions.
