Our calculator will help you to decide whether an IVA is right for you.
Poorly managed finances can affect both individuals and organisations and can lead to serious consequences. If you are struggling with your finances and are looking for the best solution to your debt problems, an IVA may be the best way of writing off financial debt.
You may feel that bankruptcy is your only way of getting free from outstanding credit, but this has serious consequences. You may lose your job, home and any assets of significant value. A bankruptcy is also published in local newspapers and is thus public knowledge. An IVA, on the other hand, has none of this stigma associated with it. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement between you and your creditors.
When a debtor falls behind on repayments, creditors will start harassing them in order to recover the missing money. In an IVA, creditors are forbidden from approaching the debtor directly.
Payments made into an IVA are based on your income and expenditure so that you are never expected to pay in more than you can afford based on supplied figures. Payments are made, usually for five years, direct to the licensed insolvency practitioner who is supervising your case. The insolvency practitioner will then distribute funds to creditors on a pro-rata basis to ensure they all receive the same dividend.
Depending on your circumstances, an IVA can be a real alternative to bankruptcy. Available to residents in England and Wales, an IVA is a totally individual arrangement that is based on your situation. Your job is not jeopardised and providing that you stay within the terms and conditions of the IVA, you can be debt free in a reasonable short space of time.