What is an IVA?
Individual Voluntary Arrangements (IVAs) are based on government legislation to help individuals who are facing severe unsecured debt problems of at least £15000 owed to a minimum of 3 creditors. They were created for people who have a disposable income level of above £200, therefore are solvent enought to avoid bankruptcy but unable to afford to pay off their debts in full.
The IVA ensures that the debtor makes 60 single monthly payments of as much as they can afford to clear off their debts. In order for the IVA to be a success, 75% of the creditors must vote in favour of the arrangement, which is based on what the debtor can afford. The payment is administered by the IVA nominee, usually an insolvency practitioner.
Once the five year period has finsished, the remained of the debts are wiped off.
To begin the IVA application process, or to see if you are eligible for an IVA, you can complete the IVA Wizard on the right.