Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) is a legally binding agreement that enables you to make a proposal to your creditors which, if accepted, will allow them to make one monthly affordable payment, usually for five years. The IVA was introduced in 1986 to provide an alternative solution to Bankruptcy for people with serious debt problems.
At the end of the IVA, you will be completely debt free after paying only a percentage of your overall debts.
Benefits of an Individual Voluntary Arrangement
- Usually lasts 5 years
- All pressure from your creditors is removed
- An IVA is a legally binding agreement so once your creditors agree to the proposal then they cannot change their mind
- Any interest or penalty charges will be frozen
- At the end of the IVA you will be completely debt free
Points to consider
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If payments are not met under an IVA the creditors could petition for Bankruptcy
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Generally an IVA will last for longer than Bankruptcy
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The value of realisable assets has to be established and contributed to the IVA
Please note for debt management advice we introduce business to New Tomorrow.