Individual Voluntary Arrangement (IVA) Advice & Information

IVA Frequently Asked Questions

What Is An IVA

The Individual Voluntary Arrangement (better known as an IVA) was introduced as an alternative to bankruptcy by the Insolvency Act of 1986.

The idea behind the introduction of the IVA was to enable people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy. If an IVA is agreed between the debtor and creditor:

Interest on the loan is frozen
Legal proceedings are stopped
The overall debt is reduced

Unlike debt management which is unregulated, an IVA is a legally binding agreement which is supervised by a Licensed Insolvency Practitioner.

An IVA is generally seen as a more favorable option than bankruptcy from both the debtor's and creditor's perspective. This is because there are no fees or legal proceedings involved with an IVA, unlike with bankruptcy. Furthermore, from the creditor's point of view, an IVA offers a greater repayment of the debt than would otherwise be achieved if the debtor were made bankrupt.

If you would like IVA advice or simply to discuss the IVA process in greater detail, please telephone freephone: 0845 296 0305.

The Advantages Of An IVA

An IVA is an extremely effective way of helping people to get rid of their debt problems and to make a fresh start. These are some of the main advantages of an IVA:

As an IVA is highly regulated it is unlikely to be open to abuse by those offering IVAservices
An IVA doesn't affect your professional status or ability to hold public office
With an IVA you only pay back an agreed percentage of your debts
While an IVA is in place, it is illegal for your creditors to harass you- and they normally agree not to contact you during this time
An IVA enables you to have a regular bank account as long as it doesn't have an overdraft facility
With an IVA, interest on your loan is frozen which means that your debt won't keep growing

If you would like IVA advice or simply to discuss the IVA process in greater detail, please telephone freephone: 0845 296 0305.

Who Can An IVA Help

An IVA can benefit anyone who is experiencing debt problems- particularly those who own property which they would risk losing if they were to be made bankrupt.

An IVA might benefit you if:

You owe money to people or companies that will not agree to an informal debt management arrangement
You have already tried an informal arrangement, but it has failed.
You owe money to so many creditors that an informal debt management arrangement would be impractical
You are facing possible bankruptcy, or you have already been made bankrupt and you want to reverse the situation

If you would like IVA advice or simply to discuss the IVA process in greater detail, please telephone freephone: 0845 296 0305.

How Does The IVA Process Work

Get in touch with us by filling in the "call me back" form on the right hand side of this page or by telephoning us on : freephone 0845 296 0305. Our friendly and experienced IVA advisers will discuss your financial situation and answer any questions that you may have about arranging an IVA.
We will then add all your debts together and calculate a realistic and affordable monthly payment. This is normally far lower than the monthly payments you are currently making.
A licensed Insolvency Practitioner will then act on your behalf to agree this reduced payment with all of your creditors.
When the agreement is accepted and the IVA has been approved, all interest charges will be stopped, and you need only pay off the reduced amount of debt, normally over a period of 5 years.

If you would like IVA advice or simply to discuss the IVA process in greater detail, please complete the "call me back" form below or telephone freephone: 0845 296 0305.

Our friendly IVA advisers are waiting to help you.

To contact an advisor call 0800 138 5445. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.