Individual Voluntary Arrangement (IVA) Overview
- Click to download: Free IVA guide in pdf
- Don't know what to do? Ask Experts your question for free advice or help on our forum or call on our 24 hour Helpline
- Is IVA right for me? Find out with the help of our IVA calculator - write off upto 90% of your debt, from £80 a month with No setup fees.
- List of good IVA companies: IVA Companies
What is Individual Voluntary Arrangement - IVA?
Individual Voluntary Arrangement is a legally-binding arrangement between you and your creditors writing off up to 90% of your debts.
It means reaching a compromise with your creditors to settle your debts within a reasonable and fixed period of time at the
same time avoid the consequences of bankruptcy. An individual who is intending to propose an IVA can apply for an Interim Order,
the interim order basically prevents all creditors from pursuing any legal proceedings against you. If legal proceedings have been commenced,
then they are frozen at the stage they have reached.
Read more about IVA and are you eligible here: Individual Voluntary Arrangement and also read: What does an IVA do to your credit record?
Starting an IVA - How an individual voluntary arrangement is set up
Anyone can consider an IVA to solve their debt problem. IVAs can be set up for anyone regardless of their profession.
Your ability to undertake an IVA is not defined by your job but you must be unable to repay your debts.
Read in detail how to start an IVA here: Starting an IVA
IVA process explained
Once you have decided if the IVA is for you, we recommend that you talk to several IVA providers (IVA providers list).
Choose one that you feel comfortable with and who has agreed to act on your behalf, you will then have to go through a
number of actions with them before your IVA is finally put in place. These actions normally take between 4-6 weeks to complete.
Read details of the action taken in 7 steps here: IVA Process
IVA Questions / FAQs
- Can anyone enter an IVA?
- How much does an IVA cost?
- What happens if I can't make my IVA payments?
Read detailed answers to above IVA questions and many more here: IVA FAQ - Detailed
- I can't have a bank account
- I will have to account for every penny I spend
- I will lose my house
Read about all IVA myths here: IVA Myths
Issues During IVA
- Can creditors continue to chase me in an IVA?
- Can I cancel my IVA once it's agreed?
- Losing a job when in an IVA
Read about all IVA issues here: Issues During IVA
IVA Advantages and Disadvantages
Read detail with description of each point here: IVA Pros and Cons
|#||IVA Advantages / Pros||IVA Disadvantages / Cons|
|1||Debt Free in 5 Years||Stick to a regimented regime for 5 years|
|2||Telephone Calls and Payment Demands Stopped||£6,000 Minimum Level of Debt|
|3||Interest and Late Payment Charges Frozen||No Unsecured Borrowing During the Arrangement|
|4||Single Monthly Payment||Longer than Bankruptcy|
|5||Protection for your home||Possible Release of Home Equity|
|6||Protection for certain assets||You will pay back more than you will in bankruptcy|
|7||Repaired Credit Rating||Damaged Credit Rating for the duration of IVA|
|8||Fixed, Legally Binding Agreement||You must include all creditors|
|9||Protection from Court Action||Some jobs do not allow the employee to be in an IVA|
IVA Terms and Conditions
If you are considering an IVA or are in an IVA, you should make sure you know which terms and conditions apply to you
and ensure you keep a copy for future reference.
Insolvency practitioners are within their rights to create their own terms and conditions, but over the years some standard formats have evolved which have been beneficial to the smooth running of the IVA for its duration.
Read full details here: IVA Terms and Conditions and IVA Glossary
The rainy day fund is a necessity for keeping out of debt
What happens if despite my best intentions, I get into debt again?
I wish they had taught me this at school
Handling money after an I.V.A.