IVA

An IVA (Individual Voluntary Arrangement) is a formal arrangement between a customer and his or her creditors. This type of debt solution generally applies to those with debts of £15,000 or more, and to people who can afford to make monthly payments of £200 or more.

The final decision about an IVA is reached by the courts but the assistance of an insolvency practitioner, who oversees repayments and ensures the court's wishes are upheld, is also required. The insolvency practitioner will work out how much you can afford to repay each month and will liaise with creditors on your behalf.

Taking out an IVA could mean that:

Up to 65 per cent of your debt is cleared
You pay one monthly payment which is worked out according to your earnings and outgoings
Interest rates may be frozen for the duration of the IVA
Your repayment period is a fixed period – often five years – after which the debt will be cleared

It is worth taking into account that an IVA will affect your credit rating and you will not be able to get any more credit while the arrangement is in force. An IVA is just one of several potential debt management solutions, so to get advice on the best option for you, fill out the simple form below.