The IVA or Individual Voluntary Arrangement was introduced in 1986 as an essential piece of legislation which allows you to avoid the trauma of declaring bankruptcy. It suits many people who are over £50,000 in debt, provided that they are in regular employment.
An IVA is a legally binding agreement which protects you against any further action from your creditors. Once you've committed to an IVA, you could become debt-free in sixty months.
With an IVA you agree with your creditors to paying only what you can afford in a single payment each month over the period of five years. Your creditors agree to write off your debt which you’re not able to repay and they will leave you alone.
Do you qualify for an IVA?
You can take a look at our section of the IVA Pros and Cons. You can also find out more when you contact us to see if you qualify for an IVA. Call now on 0800 083 1433 to find out more.
An IVA could be the best way of avoiding bankruptcy
If your debts are so serious that you face the possibility of bankruptcy, an Individual Voluntary Arrangement could be a better alternative. While a Debt Management plan can sometimes be an option as well, it is not legally binding and people you owe money to can later change their minds if they wish to – unlike with an IVA. Talk to us for unbiased debt advice you can really trust.
Making an IVA work for you
It's up to your Individual Voluntary Arrangement provider to negotiate with people you owe money to and develop a legally binding proposal involving lower affordable monthly payments for you. The Individual Voluntary Arrangement will usually last for five years, after which you will be debt free.
Call us free on 0800 083 1433 Our phone lines are open 8:00 am and 9:00 pm Monday to Friday, or 9:00 am and 5:00 pm on Saturday and 10:00 am to 4:00 pm on Sunday. You can call free for an initial chat about your own debt situation.
IVA help and advice
When your debts become significant, you can’t afford to make the repayments and bankruptcy is become a real possibility, an IVA or Individual Voluntary Arrangement is often a really good alternative.
IVA’s were introduced in the 1980’s as a way of creating a binding contract between individuals and people you owe money to to pay smaller manageable repayments over the period of time, normally 5 years, without incurring further interest, and being sent repayment chasing letters and phone calls. In addition, homes were protected as long as the terms of the IVA were being adhered to.
To find out whether an IVA is the best debt solutions for you requires an assessment of your current financial position, an Insolvency Practitioner will need to present your IVA proposal to people you owe money to, and it will need to be agreed by a majority of people you owe money to. If your IVA is not agreed then another debt solution will need to be considered.
Debt Free Direct is officially the UK’s Number 1 IVA Company. A fact that we are proud of. However, we are committed to offering consumers our best advice, and if a Voluntary Arrangement is not the best debt solution, we will recommend a more suitable one.
