What is IVA?
It is an agreement worked out between you and your creditor, wherein you agree to pay them back as much as you can within a period of not more than 5 years (60 months)
Advantages of Individual Voluntary Arrangements :
There are several advantages that you can have from such an arrangement. First of all, your creditor agrees to wipe off up to maximum of your debt. They are also unable to contact you, by letter or telephone, for instance, or take any further action against you. Your interest will be frozen and no charges will be put against any of your accounts, either. Some of the debt types that can be dealt with by an IVA are unsecured loans, council tax arrears, Inland Revenue, business rates, personal loans to friends and family. You cannot deal with secured or homeowner loans through this method.
An IVA will achieve the following:
• One reduced monthly payment to your creditors
• A court order will stop any legal action by your creditors.
• Telephone calls and letter from your creditors will stop.
• Interest and charges are stopped, so the spiral of debt is halted.
• Fixed repayment method at the end of which all of your debts are discharged, giving you ' light at the end of the tunnel'.
• All unsecured creditors to whom the I.V.A proposal is sent, are bound by the arrangement, even if they do not agree to the proposal, providing that maximum of your remaining creditors in value agree to the proposal.
• The I.V.A. is not advertised or notified to your employer.
Unlike bankruptcy, details of an IVA are not openly published anywhere, it is a confidential arrangement between you and your creditors. Employers and landlords are not informed.
