What Is an IVA?
If you are finding it difficult to meet monthly loan repayments, it may be possible to set up an Individual Voluntary Arrangement (IVA) with your creditors. This is an agreement whereby your combined monthly repayments are reduced to a more affordable single amount over an agreed length of time – usually five years. Alternatively, it may be possible to arrange a ‘lump sum’ IVA. This is a one-off payment which is distributed among your creditors. It may also be possible to arrange a combination of the two, with a lump-sum offer and an agreed period of reduced monthly payments. Once an IVA is in place, your debts will not increase, and any outstanding balance at the end of the term will be written off. What Are the Benefits of an IVA? – An IVA allows you to consolidate all your debts into one affordable monthly payment over an agreed period of time. – All IVA’s will go into a public register. How Can I Apply for an IVA? In order to apply for an IVA ,you will need to work with an Insolvency Practitioner (IP). Your IP will liaise with your creditors directly to reach an agreement and draw up the terms of your arrangement. Once the IVA has been obtained, you will have full legal protection, preventing creditors from being able to contact you. Organisations such as https://www.carringtondean.com/ offer help and advice for those looking to secure an IVA Who Can Apply for an IVA? If you live in England, Wales or Northern Ireland and are struggling to meet repayments but can still afford a reduced monthly payment or lump sum, you may find an IVA a suitable option. Separate advice is available if you live in Scotland. |