Individual Voluntary Arrangement
If you are committed to taking control of your personal debts, keeping your home and avoiding bankruptcy then an IVA, could be the best solution to your debt problems.
An IVA is a simple, flexible and effective way of getting rid of all your debts. You can expect to write off up to 75% of your unsecured personal debts with an IVA. The amount of debt that you can write off with your IVA will depend on what you can afford to pay.
An IVA is a legally binding agreement between you and your creditors. The agreement states that you will make fixed monthly payments each month into your IVA, and in return they will accept lower payments over a fixed term, usually 5 years, and write off any debt that has not been repaid in this time.
If you own your home, you will need to pay a percentage of the equity (calculated at today's value) into the arrangement. Your creditors cannot demand any additional payments from you unless your financial circumstances improve during the life of the IVA. During the IVA, the creditors are legally bound to freeze the interest on any outstanding debts and to cease adding late payment charges to the debtor's accounts. Once an IVA has been successfully completed any outstanding balances must be written off by the creditors, in many cases as much as 75% leaving the debtor debt free. The IVA is drawn up by one of our panel of licensed Insolvency Practitioners.
Whether you qualify for an IVA depends on how much you owe, what assets you have, what you can afford to pay into the IVA and the stability of your income to enable you to maintain payments.