IVA stands for Individual Voluntary Arrangement. It was introduced by the Government to help those struggling with high levels of debt. It is a complex insolvency procedure but if you qualify then you can legally write off your unaffordable debt.
IVAs are very complex, so the qualifying criteria are not simple to list. An IVA is most suited to those with debts over £15,000 over a range of 3 or more creditors. You must be insolvent, which means that you cannot afford to make your repayments as they fall due. To see if you qualify for an IVA please get in touch with our expert IVA advisors.
1: Contact One Advice who are a specialist insolvency practice. We will talk through your current finances and help you decide if an IVA is the right choice for you. We offer the highest level of ethical advice and would never recommend a debt solution that is not suitable for you.
2: An IVA is not something you can arrange on your own and it needs to be arranged by an Insolvency Practitioner (I.P). They will help draw up your IVA proposal to your creditors. This means going through information such as your monthly income and living expenses and agreeing on a monthly payment that you can realistically afford.
3: Once you have signed off the relevant documentation and sent it back. Our One Advice I.P’s will put together your IVA proposal and contact your creditors.
4: A meeting with your creditors will be arranged and they will vote on whether or not to accept your IVA proposal. Over 75% of your creditors (in terms of debt value) must agree to the terms for it to be accepted.
5: Once your IVA had been accepted it will be legally binding upon all your creditors, even if they didn’t vote or voted against the IVA. All interest is frozen and creditors will not contact you during the period of your IVA.
6: The average IVA term lasts 60 months. On completion all remaining debt will be written off.