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Obtain IVA (Individual Voluntary Arrangement) Advice from Experts

An IVA (Individual Voluntary Arrangement) is a voluntary yet formal agreement with your creditors that offers debt consolidation. It will enable you to pay all or part of your debts through agreed terms. IVA involves agreeing to make a monthly payment to an insolvency practitioner, who will then divide this money between your creditors.

IVA Advice at a Glance

IVAs were introduced as government legislation in 1986. Although sometimes longer, IVAs typically last 60 months and may write off a large proportion of your debt. We have detailed some information about IVAs below:

  • You make affordable monthly payments, usually over five or six years.
  • If you have a lump-sum to offer, this can be paid as a one-off ‘full and final’ settlement, or a combination of a lump-sum payment followed by monthly payments.
  • If there’s equity in your home, you’ll need to try to and re-mortgage.
  • If you are unable to re-mortgage you can make a maximum of 12 extra payments, or a third party can offer a sum equivalent to the equity.
  • Once you’ve made your final payment any remaining debt is written off. Please be aware that remortgaging may result in a higher interest rate.
  • Your creditors can't pursue you for your debts.
  • Your credit rating will be negatively affected.
  • If you’re a homeowner, you’ll usually be able to keep your home, provided you maintain the mortgage payments and any other loans secured on your property.
  • Your IVA will be recorded in a public register.

Other issues to consider with an IVA

Before you enter into an IVA (Individual Voluntary Arrangement), there are other issues you should take into consideration. These are explained as follows:

  • Should the IVA fail, creditors may back-date interest on your debts, or may request that the supervisor of your IVA petitions for your bankruptcy.
  • Once your IVA is set up, your spending will be restricted until the IVA comes to an end.
  • Should your circumstances change during the term of your IVA, you may ask creditors to review the terms you originally agreed to. During your IVA you'll receive an annual review. If your situation has improved, you may have to increase your payment.
  • At the end of an arrangement, only debts included in the arrangement will be discharged.
  • Any debts that can't be included will still be left to pay. For example: any money owed under family court proceedings, any court fines or debts arising from fraud, debts incurred after the IVA, or student loans.
  • If you’re a homeowner, you’ll be asked to re-mortgage your property six months before your IVA ends. If you are unable to re-mortgage, you could make a maximum of 12 extra payments or a third party could offer a sum equivalent to the equity as an alternative.

Contact us for further information about debt consolidation and IVA (Individual Voluntary Arrangement).