So, what’s the deal?
An IVA is a formal agreement with the creditors that you owe money to.
You will agree to make a low monthly payment for 5 years (60 months). In return, at the end of the 5 years; your creditors will agree to write off all remaining balances. Leaving you completely debt free.
If you are looking to apply for an IVA, it is really straight forward. Just follow these 4 easy steps:
- Consider your choices. If you can not afford to keep up with payments on your debts or if you think you may not be able to in the future, you are in the right place.
- Make sure you are eligible for an IVA, by using our free IVA calculator.
- Our advisors will review your circumstances and create an IVA proposal specifically based on your current financial situation.
- You enter your IVA. 60 months later, you are completely debt free.
You can apply for an IVA within 30 seconds using our free IVA calculator.
Why should I apply?
Good question! You need to consider a few things about debt.
Your debts may increase if you do not pay them on time, due to charges and interest.
Unpaid debts lead to debt collection.
It gets worse:
- Bailiffs can visit your house.
- Debt collectors can visit your house.
- You may be hassled with calls, texts and emails.
- Some bailiffs will seize goods including household items and vehicles.
- Unpaid debts can affect your current job and any future jobs.
What’s the bottom line?
An IVA is a formal arrangement which can not be broken. It is designed to protect you and the people you owe money to. Ignoring debt issues often leads to negative consequences.
Debt advice will only help if you act in time.
Is an IVA the right choice?
- Do you have over £5000 of unsecured debt?
- Are you struggling to keep up with payments on your debts?
- Do you have a regular income of £800 per month or above?
If so, a debt solution can help.
If you are Scottish, you will need to apply for a Scottish Trust Deed. See here.
How does an IVA work?
In a typical Individual Voluntary Arrangement:
- You will make regular monthly payments based on what you can afford for 5 years.
- A majority of your debts will be written off.
- Your Insolvency Practitioner will handle all payments .
- Your creditors will not be allowed to contact you, by law.
- The interest and charges on your unsecured debts will be frozen so your debt amount does not get any higher.
- After 5 years, all of your debts are written off.
Here’s the kicker:
- Your creditors must approved your IVA.
- You must be open and honest, and provide details when needed.
- Your credit score will be impacted.
- You will not be able to get any more credit whilst you are in your arrangement.
- You will be registered as insolvent and placed on a register.
More questions? See our IVA FAQ.
How can I apply?
The first step is to use our free IVA calculator by clicking here.