Individual Voluntary Arrangements | IVA London

An Individual Voluntary Arrangement (IVA) is a debt solution available to people in London who are suffering with large amounts of debt and are struggling to keep up with their repayments. Reasons that you may be missing payments could be illness, unemployment, bereavement, divorce, separation, demotion or any other changes in circumstances. Sometimes the debt levels are just too high for people and they have let their debts spiral out of control.
An IVA is an alternative to Bankruptcy. It is an agreement between you and the creditors that you owe the debt too. You agree to pay off a percentage of their debt over a given period of time usually 60 months. An Insolvency Practitioner is needed to set up and negotiate the IVA with the creditors. An IVA is a completely legally binding process.
Every IVA is unique and individual, depending on your employment status, income, expenditure, amount of unsecured debts and number of creditors. Repayments to your creditors are established by taking into consideration all these factors and coming to a legally binding agreement on the monthly repayments. The IVA will be successful if more than 75% of the creditors involved agree to the terms of the arrangement.

IVAs offer people an alternative to Bankruptcy. More and more people are choosing to use IVAs to help them out of debt. If you are struggling with your debts contact Debt Advice London and we can go through your situation and see if an IVA is an option for you. Some benefits to using an IVA are…

• You can be Debt Free in 60 months no matter what your debt

• All Interest and Charges on the debt is frozen

• You can have some of your debts written off

• One affordable monthly payment

• No more Creditor harassment

• No Employer Contact

• No Upfront Fee's

N.B. You will not pay any more than your monthly payment. Our fees are taken out of this payment and are agreed by you and your creditors.

An IVA usually lasts for 60 months or 5 years. After this time, your IVA is complete and the remainder of your debt is written off. If you have debts of £20,000 and have a disposable income every month of £200. You enter an IVA and after 5 years you have paid £12,000 and the remaining £8,000 is written off. Your creditors can no longer pursue you for this debt. Not all IVAs can last this long. Some IVAs can be settled in one lump sum payment. i.e. if you have equity on your home. This is known as a Lump Sum IVA.

An IVA may be the right choice for you if the following criteria applies to you:

• You have debts over £15,000
  
• You have 2 or more creditors (people you owe money to).
  
• You have a surplus income each month (after all your essential living expenses), excluding any creditor payments (your new payment will include all your unsecured creditors)
  
• You are struggling with your Debts

If you think an IVA is the right debt solution for you then you can apply here today for more information on getting started with an IVA. You can fill in the application form here or contact us via one of the methods below.