If you are suffering from significant debt problems then you may be considering applying for an Individual Voluntary Arrangement (IVA). An IVA is one of the most popular forms of debt relief available to UK individuals. They aren’t however suitable for everyone and so before you apply you should consider a number of things.
Individual Voluntary Arrangements are a government back debt solution that will consolidate your debts and leave you debt free after a fixed period of time, usually after five years. Unlike bankruptcy the IVA is a completely private agreement between you and your creditors. It is a legal arrangement that replaces all your existing unsecured credit repayments with a single regular monthly payment to be shared out between your creditors. Nearly fifty thousand people used an individual voluntary arrangement to get their debts restructured and payments lowered last year.
To qualify for an IVA you must meet certain qualifying criteria. IVAs are intended to help people with significant debts of at least £15000. Generally it is preferable for this debt to be divided between three or more creditors. You should also have a regular income that will enable you to meet the payments.
To apply for an IVA you should first talk to a professional financial advisor who will advise you whether or not it is the best solution to your financial problems. If an individual voluntary arrangement is right for you then there are many companies in the UK who can arrange your IVA. Individual voluntary arrangements can only be prepared and managed by licensed Insolvency Practitioners (IP). It is the IP who will draft a formal proposal for you and your creditors. Providing at least 75% of your creditors agree to the proposal the IVA will be confirmed and all creditors will be automatically bound by its terms.
IVA Advice.org.uk provides impartial information on individual voluntary arrangements and debt solutions. Apply for an IVA and have your IVA questions answered by our professional debt advisors.
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