Our calculator will help you to decide whether an IVA is right for you.
If you want to take control of your personal debts, avoid bankruptcy and keep your house, an IVA, or Individual Voluntary Arrangement, can be the best solution for all kinds of debt problems.
An IVA is a simple, effective, tailor-made method of clearing your unsecured debts. With an IVA, creditors will typically agree to write off a portion of your debts. The amount written off in an IVA will depend on how much you can afford to pay into the IVA.
Benefits of an IVA:
Once the Individual Voluntary Arrangement has been agreed with the creditors, you will have to pay a certain amount every month, based on your disposable income. An IVA will usually last for five years, after which any remaining debt is written off. If you own a property and have any equity available in it, you will usually be required to remortgage in the final year of the IVA to release a percentage of this equity and introduce it into the arrangement. During, and after, your IVA, your creditors are not permitted to take any action to recover your debts, although if your circumstances improve, you may be required to increase your monthly payment into the IVA.
To enter into an IVA, you need to seek the services of an IVA Company, since an IVA can only be arranged through a licensed insolvency practitioner. An IVA Company will usually offer a free consultation to ensure that an IVA is the right solution for you and that you know all about IVAs. The IVA Company will provide ongoing assistance and advice through the IVA, with all fees included in the monthly payment to your IVA. Financial experts will assist by giving high quality and non-judgmental advice regarding the IVA and alternatives such as bankruptcy.
The IVA Company assures that your payments into your Individual Voluntary Arrangement are calculated from your disposable income. This is the amount, which you earn every month that is not utilised for the necessary living expenses, housing costs and secured loans. As long as you keep on making your normal mortgage payments, an Individual Voluntary Agreement will help you to avoid bankruptcy and keep your house.