| Individual Voluntary Arrangement |
 What is an Individual Voluntary Arrangement?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between yourself and your creditors. It is typically helpful for people with large debts (£15k+) who are unable to repay that debt over a realistic time frame on a debt management plan. Once an IVA has been accepted by your creditors, you pay an agreed amount towards your debt each month over a fixed period (normally 5 years). During this period, all interest and charges on your accounts will be stopped and at the end of the term any debt remaining is written off.
An IVA will seriously damage your credit score and should only be considered having taken expert advice. At Whittaker Bell, we will only advise you to consider an IVA if it is the best option for you to clear your debts and can put you in touch with a licensed Insolvency Practitioner to talk you through your options.
We’re here to help you
If it appears as though an IVA is going to be the best option, we will speak to your creditors on your behalf to advise them of your financial difficulties. Then, once you have completed and returned a simple questionnaire relating to your situation, we will refer you to our Insolvency Practitioner who will propose your IVA on your behalf. If the proposal is acceptable to your creditors and you adhere to the terms of the fixed agreement then in 5 years time you will away debt free, if not, we can look at other options available to you such as a Debt Management Plan and Bankruptcy.
Advantages of an Individual Voluntary Arrangement
Affordable – you only pay what you can afford, this means that if you cannot afford to repay all of your debt, then a percentage of what you owe may be written off.
Fixed timescale – you pay your debt over a fixed term (normally 5 years) this means that you know exactly when you will be debt free.
Interest and Charges Stop – Once your proposal has been accepted by your creditors, you will pay no more interest and charges on your accounts.
No More Hassle – Creditors and Debt Collectors cannot continue to chase you for payment once an IVA is in place.
Avoids Bankruptcy – Once your IVA is in place, your creditors cannot make you bankrupt if you keep up with the payments on your IVA. This means that you remain in control of your assets.
No Set Up Fees - The fees for an IVA are taken out of the monthly payment to the creditors so you do not have to find a large sum of money to enter into the arrangement.
Disadvantages of an Individual Voluntary Arrangement
Credit Rating - By entering into an IVA your credit reference file will be impaired for 6 years and make obtaining credit difficult if not impossible for that period.
Remortgage - If you have available equity in your property, you may be required to release some equity to repay as much of your debt as possible.
An IVA is a legally binding agreement between yourself and your creditors. If you do not keep up with your payments then the IVA may fail and may lead to bankruptcy. It is advisable you speak to one of our consultants prior to considering this course of action.
For a no obligation telephone consultation, call us FREE on 0800 622 6480
Subject to eligibility and acceptance, debt write-off applies on completion of an Individual Voluntary Agreement, alternative solutions may be offered. Fees payable. Your ability to obtain credit will be affected. Homeowners may be required to re-mortgage during the term.
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