IVA Settlement
IVA Settlement
An IVA settlement is a specific type of IVA (Individual Voluntary Arrangement). A standard IVA is a deal between a customer and their creditors whereby an agreed sum is paid each month. Interest is usually frozen for the duration of the IVA and repayments are often lower than they would be if the IVA was not in place. In some cases, a certain amount of debt will be written off altogether at the end of the fixed IVA period, usually around five years.
An IVA settlement is similar, the only differences being that:
-
The IVA can be paid off early, either using equity from property or using third party funds
-
An agreed lump sum is paid rather than monthly instalments
-
A proposal must be made to creditors outlining the amount owed and how you plan to settle it
-
You could end up clearing debts more quickly, which will also help to improve your credit rating
Not everyone has the assets to qualify for an IVA settlement, but if you do it could help to ease your debt burden. Whether you are struggling single-handedly with your debts and are interested in IVAs, or already have a deal in place but would like to find out more about IVA settlement, fill out the form and an advisor will be in touch.