IVA Services

The IVA, or Individual Voluntary Arrangement, was created by the the Insolvency Act 1986. The main aim of the IVA was to allow individuals facing financial difficulty to make a formal agreement with their creditors instead of filing for bankruptcy. IVA services are provided by licensed insolvency practitioners. When an IVA is agreed, the following things take place:

• Interest on unsecured debt is frozen
• Creditors cease debt collection processes
• Overall debt is often reduced

Advantages of IVA services

• The Individual Voluntary Arrangement is an effective method of eliminating debt and making a fresh start. The main benefits of an IVA include:
• An IVA does not affect the professional status of the debtor person and their capability to hold public office
• While the IVA is in effect, creditors are not permitted to contact the debtor seeking repayment of outstanding debts
• The agreement allows you to hold a bank account providing it does not have the overdraft facility
• The interest on your debt is frozen
• During an IVA the debtor only repays what is reasonably affordable

When IVA services can help you
 
IVA services can be really beneficial in certain cases. They are highly beneficial when:

• Some of your creditors will not accept an informal debt arrangement or debt management plan
• You have already tried an informal arrangement or debt management plan without success
• You do not want to risk losing your home in bankruptcy proceedings. 

How does the IVA service work?

• Get in contact with an IVA service provider. An experienced and professional IVA advisor will talk about your financial situation and answer any queries, which you might have regarding an IVA.
• The IVA advisor will calculate your entire debt and work out a realistic and affordable monthly payment. This will usually be less than your normal monthly payments.
• A licensed insolvency practitioner works on your behalf for agreeing this reduced amount with your lenders
• When the arrangement is agreed by 75% (by value) of your creditors all interest and charges will be frozen.

Unlike the bankruptcy there are no legal proceedings involved with the IVA, which makes this arrangement a more favourable option.