What is an IVA?
IVA stands for Individual Voluntary Arrangement. In short, an IVA means you could write off a significant proportion of your debt. Usually this is because you can no longer afford to meet your monthly payments.
An IVA could save you from bankruptcy.
IVA is a legal process that allows you to make an arrangement with your creditors to only pay a percentage back of the debts you owe.
Why would your creditors agree to this?! Well, it is better for them to accept a reduced payment from you than chase you for the money. Especially when there is no guarantee they will get it.
More and more people are applying for an IVA when their finances get out of hand. In 4-8 weeks, once we've met with your creditors, you could be paying out much less each month. And your interest will be frozen. In 5 years you will be completely debt-free. You will be able to start afresh!
5 key facts you should know about IVAs
- An IVA means you are guaranteed to be debt free in 5 years (as long as you keep up the reduced payments that are agreed).
- An IVA is a deal that we negotiate, on your behalf, with your creditors.
- An IVA freezes any interest on your credit cards and loans.
- An IVA prevents your creditors from taking any further legal action against you.
- Many people who find themselves in debt are using IVAs as a proactive choice to avoid bankruptcy, legal proceedings and heartache.
The pros and cons of an IVA
Pros
- You avoid bankruptcy
- You could write off a significant proportion of your debt
- You won't lose your house and/or car
- You only pay what you can afford
- Your interest payments will be frozen
- You won't be hassled by creditors
- You get back in control of your money
Cons
- You are not allowed to borrow anymore in the IVA time period
- You may not be able to borrow with some lenders for up to a year afterwards
- If you don't pay what is agreed within the IVA you could go bankrupt.
