An individual voluntary arrangement is a debt solution that can make you debt-free in usually 48 months. The debt solution which is commonly known as an “IVA” is a formal and legally binding agreement between your creditors and yourself that allows to you pay back the debts you owe over a certain time period (48 months on average). The debt solution is approved by your creditors and the court. It is important to mention that an IVA comes with major advantages and disadvantages.
How does the individual voluntary arrangement work?
The debt solution referred to as an “IVA” must be set up by an Insolvency Practitioner (IP). The IP will charge fees for the IVA. The cost of these fees can vary and it purely depends on the amount you are paying back in your individual voluntary arrangement.
Do I decide the Monthly Repayment amount?
The amount you pay back each month to your IVA depends on a few key factors such as your income and expenditure, your employment status, and more. Don’t worry the senior debt advisor will talk you through all of this. There is a minimum repayment amount. that amount varies depending on the IP you go through. You will not be put into an IVA if you cannot afford the repayments after the I&E check is complete.
The Advantages of an IVA
Some of the advantages that come with an IVA are:
- Debt Free in 48 Months (or the agreed set time)
- Creditors cannot hassle you
- Remove some debt stress
- One monthly repayment
- Write off a percentage of your debt (Percentage varies)
- Its an affordable plan for you
- Freeze Interest and Charges
The disadvantages of an IVA
- An IVA will affect your credit score and will remain on your credit file for six years from the date the creditors agree.
- You will be listed on the Insolvency Service Register.
- Credit will be hard to obtain whilst the IVA shows on your credit file.
The disadvantages of an IVA are important to take a look at before you enter the plan so to see all of the disadvantages of an individual voluntary arrangement Click Here.
Apply for an individual voluntary arrangement
Find a Debt Expert can put you into an IVA, Apply today and we will run you through our debt calculator and we can tell you within 30-60 minutes if you are eligible for the debt solution. its important to know that individuals living in Scotland can’t enter an IVA, for those living in Scotland wishing to enter a debt solution click here.
Those outside of Scotland but inside of the UK can apply for an IVA by clicking here.