Everything You Need To Know About an IVA

Are you struggling to repay debts? Have your payments slipped and are you now facing high charges and interest on your accounts? If this is the case, an Individual Voluntary Arrangement (IVA) could be for you. 

There are many reasons why you might be experiencing problems with debts. Perhaps you have lost your job, become ill or perhaps you have simply borrowed above your means. Whatever the reason, it really is a good idea to take positive steps to improve your situation. An IVA is just one of the debt management solutions available to you.

An IVA is a legal procedure that is designed to assist anybody with debt above £15,000. If you have unsecured debt above this amount, get in touch with a debt management company for advice. Unsecured debt includes personal loans, credit cards, store cards and overdrafts. 

You might be wondering whether an IVA is the right solution for you. If you are finding it hard or impossible to meet the demands of your creditors then this might be a good solution for you and certainly a less drastic route than bankruptcy. Speaking to a professional debt advisor will help you to determine whether an IVA could be the best solution.

It’s quite easy to arrange an IVA. IVAs are managed by insolvency practitioners. The IP will review your personal situation and the debts you owe before they put together a proposal for your creditors. For the IVA to be in place you will need creditors representing 75% of your debts to agree to the proposal. Most creditors would rather receive something than nothing and therefore most will agree to your IVA. 

If your IVA goes ahead, your creditors are no longer allowed to take court action against you or to continue harassing you for the money owed to them. This is good news if you have been plagued by constant phone calls or letters demanding payments to be made. 

An IVA will typically last for 6 years, but could be paid off sooner if you are able to make lump sum payments to your creditors. If your financial situation changes during the course of the IVA you payments could be revised. For example, if you receive a pay rise during the course of the IVA you may need to increase the payments you are making to your creditors. 

It’s never been easier to find out more about an IVA and whether it is the right solution to suit your needs. Get in touch with a debt management company in the first instance. They will be able to look over your debts, the money you have coming in and the types of debt you have before recommending whether an IVA is the best solution. They may have another solution that could benefit you more. 

The most important thing is to do something positive about your debts and to take action the moment you notice you have a problem. Thousands of people in the UK have benefited from an IVA and are now facing a brighter financial future.