An Individual Voluntary Arrangement - more commonly known as an IVA - is a debt management solution that could help you repay your debts in affordable monthly payments over a fixed period.
An IVA is a formal agreement between you and your creditors set up through an Insolvency practitioner. The resulting IVA is legally binding, must be agreed to by at least 75 percent of your creditors and establishes a period of time over which you need to pay your debts, usually five years.
What is an IVA? Find out more from Legal Advice Helpline
Benefits and disadvantages of IVAs
When you feel as though your debts are slipping out of control, IVAs can provide you with a way to regain control of your finances. IVAs offer:
- A way to reduce your monthly payments and possibly cease further interest payments
- You can set out your repayment period, taking any personal circumstances into account
- IVA's offer fewer restrictions than those imposed by bankruptcy
However, entering into an IVA may have disadvantages, such as:
- Repayments are often made over a longer period of time
- If repayments are not made and the IVA fails, the debtor may be forced into bankruptcy
- Assets could be at risk if failure to pay continues, unless they are specifically excluded from the IVA
More pros and cons of IVAs
Getting help with IVAs
With Legal Advice Helpline, you could obtain help with your IVA queries and guidance towards the best solution to suit your needs. You will also be able to find information on other debt help resolutions, such as debt management plans, debt consolidation loans and declaring bankruptcy.