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The IVA
The Individual Voluntary Arrangement or IVA was introduced by the government as part of the Insolvency Act 1986 and it can be a very effective debt solution if you are in serious debt and owe more than £ 15,000.
The Debt Advice Trust does not 'push' any particular debt solution because our advice is based only on need. You can be sure that we will recommend an IVA only if it makes the most sense in your own circumstances.
An IVA is a 'voluntary' arrangement because, unlike bankruptcy, you enter it yourself, rather than having it forced on you. It will often give you new and affordable monthly payments over a period of five years and these payments replace all of your current payments to lenders. At the end of the IVA you will be free of your debt problems. Talk to us to find out more.
An aggreement with your creditors
Before you can enter into an Individual Voluntary Arrangement, your creditors must agree to write off a certain part of your debts so that you only end up having to pay off the amount you can realistically afford. An adviser will work with you to put together a proposal to your creditors, and if 75% of them agree then you enter into a legally binding contract with them. This can be an advantage because the people you owe money to can't change their mind later, which is not the case with debt management or informal arrangements.
Lover monthly repayments
With an IVA, you still make monthly repayments, but these are reduced to cover only the amount of debt it is felt you can manage. The amount your IVA provider receives for doing this is agreed with your creditors and it doesn't affect what you pay.
IVA FAQs
- Q: Who is involved in agreeing to an IVA?
A: You, your IVA provider and your creditors. Exactly how an IVA gets put into practice is important so talk to us first for further debt advice.
- Q: How do I choose an IVA provider?
A: If we think an Individual Voluntary Arrangement is the right sort of debt solution for you, then we’ll recommend a reputable provider from our Approved Panel.
