An Individual Voluntary Arrangement (IVA) could be your best solution to becoming debt free. If you are having serious debt problems, unable to keep up on any minimum payments and have more than £15,000 of unsecured debt, then an IVA through One Advice could help you to avoid bankruptcy.
In contrast to a debt management plan which is an informal agreement between you and your creditors, an IVA is a legally binding contract. Whilst this may sound a little concerning, there is a real benefit for you.
Because the IVA is legally binding on your creditors, if you maintain your monthly payments then your creditors cannot take any further legal or collection action against you. Your assets are protected, interest and charges cannot be added, you will pay only what you can afford each month and what you haven’t repaid during your IVA is written off.
This may sound too good to be true, but, if you qualify, you have a legal right to propose an IVA, which is subject to the consent of your creditors.
An IVA is an instrument of public policy, in other words it is government legislation. The IVA scheme was launched by the government in 1986 as a less severe alternative to bankruptcy, helping those that are struggling with mounting debts.
Please see our IVA FAQs page for the most frequently asked questions by our clients. For free advice and information please call our One Advice IVA advisors free on 0800 048 1752.
An IVA can only be arranged for you by a licensed Insolvency Practitioner, who will put forward your proposal to your creditors. Your creditors will often accept an IVA repaying only 40% or less of your debt, as they don’t have expensive collection costs to bear. Additionally they are eligible for tax and VAT relief on the debt that is written off.
However, because an IVA is also legally binding on you, this means that you should not enter into an IVA if you cannot afford your monthly repayment. The Insolvency Practitioner will agree with you what you can afford to repay each month and you need to commit to paying that amount each month.
Typically, an IVA is a 60 month repayment agreement between you and your creditors and at the end of the IVA, what you haven’t repaid is written off.
No other solution, except bankruptcy, can write off part of your debt.
One Advice are committed to giving you reliable information about our IVAs, and helping you to decide whether this is the best option for your circumstances.
Online we have the IVA Advice Guide, which offers you a portal of IVA information, but please do not hesitate to contact us directly. We have a team of dedicated IVA advisors who can offer you free advice about IVAs and the alternatives.
To see if you qualify for an IVA, please take the One Advice One Minute Debt Wizard which will advise you on your best debt solutions.
We can offer you free IVA advice, so call our expert One Advice IVA advisors on 0800 048 1752 to see how an IVA could work for you.