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Individual Voluntary Arrangement (IVA)
An IVA allows you to repay your debts over a set period of time (usually 60 months) after which any remaining amount owed will be legally written off. This is backed by full creditor protection and all interest and charges frozen if approved. An IVA may be suitable for you if you have more than £6000 of unsecured and finding it difficult to pay your contractual repayments every month.
Advantages
- An IVA offers you legal protection from your included creditors.
- An IVA usually has a fixed term of 60 months/ 5 years, and at the end of the arrangement, any outstanding balances on included debts will be written off
- The payment you make into an IVA is based on your Income and Expenditure so should always be affordable for you.
- No upfront fees; fees are incorporated into your monthly IVA payments and vary between IVA companies.
- Interest and charges on included debts are frozen on approval of the IVA.
- Monthly payments reduced to an affordable level and consolidated into one easily manageable payment.
- All included debts are managed on your behalf by an IP so you no longer have to deal with your problem creditors.
Disadvantages
- Any debts not included in your IVA will remain outstanding.
- Your credit file will be affected for 6 years and you will be restricted from obtaining further credit during the IVA. Your ability to obtain credit may also be affected.
- Homeowners may be asked to re-mortgage 54 months into the IVA. If releasing equity via remortgage is not possible, you may be required to extend your IVA by a further 12 months. A remortgage could attract higher interest rates.
- Failing to keep up with IVA payments may result in your debtors filing for your bankruptcy.
- Restrictions will be placed on your expenditure once entering in an IVA
- Some creditors may not approve an IVA Proposal.
- Some creditors may not approve an IVA Proposal.
Trusted IVA Provider
We are one of the UKs leading IVA providers.
- Over 25,000 happy IVA clients in the past 25 years.
- 98% customer satisfaction rate.