An Individual Voluntary Arrangement (IVA), is carried out by a Licensed Insolvency Practitioner – such as ourselves.
An IVA is a legal procedure available in the UK (excluding Scotland). Which is an agreement between you and your creditors to help you pay off your debts at an affordable rate – usually over a period of 5 years.
Depending on your personal circumstances, an IVA may be the solution for you.
In simple terms, a Licensed Insolvency Practitioner acts on your behalf to contact all of the people and firms to whom you owe money. He or she will then outline your circumstances including your income and outgoings and make an offer based on those figures of what you can afford to pay.
This often involves your creditors accepting only a percentage of what you actually owe. But this is on the basis this will be better for them than if you were made bankrupt. Providing that at least 75% of creditors by value accept then all are committed (this does not include secured creditors such as your mortgage company).
The arrangement freezes interest and protects you from legal recovery processes (including such as actions by bailiffs). The total debt is effectively separated and agreed regular payments are made over a five year term.