What is an IVA (Individual Voluntary Arrangement)?

An IVA is a formal agreement between you and your creditors to repay what you can afford towards your debts over a five year period (60 months). They are extremely effective if you have debts over £15,000 and are looking for a solid and stable debt solution. Another bonus with an IVA is that you do not have to repay the entire total of your debt, up to 75% can be completely written off. Creditors are legally not allowed to contact you during the 5 year period and you will solely deal with the Insolvency Practioner. An IVA can also prevent your house being repossessed.

What is the process?
A professional Insolvency Practioner will go through a financial statement with you to calculate your income, expenditure and creditor details. From this they can work with you to find a monthly figure you are comfortable repaying. Once you have agreed the amount with the IP, they will then draft a proposal and present it to your creditors to vote for or against. As long as 75% of your creditors agree to the IVA, it will go ahead, even if the remaining 25% do not agree.

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How long does it take to setup an IVA?
An IVA usually takes between 6-8 weeks in total to setup. The Insolvency Practioner will take approximately 4-6 weeks to create the initial draft proposal and then from there, a further 2 weeks for the creditors to vote on your case. Once your case had been agreed your Insolvency Practioner will take over all dealings with your creditors and you will solely deal with them.

Are interest and charges frozen?
Yes they are frozen throughout the duration of the agreement so your debts will not increase.

How long will it take to get out of debt?
It will take you 60 months to become debt free and any remaining debt that is left after that  period is written off.

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How to find the right IVA Company

It is important to find the right IVA company to process your case and ensure it is handled correctly. IVA’s are a legally binding agreements and have to be handled by a professional Insolvency Practioner (IP). All the companies we recommend have in-house Insolvency Practioners are qualified are regulated by the relative government bodies so you can be rest assured your case will be handled professionally.

Do I Qualify for an IVA?
See if you qualify for IVA with our Free Online Calculator and we will find the right company to help you back on your feet with your finances.