IVAs (Individual Voluntary Arrangements) allows debt to be written off legally so that you never have to pay the money back. As much as 90% of your debt could be written off. An Individual Voluntary Arrangement is a legal agreement drawn up between the person in debt, all creditors to whom money is owed (banks, credit cards etc) and a Licensed Insolvency Practitioner.
An IVA is a legal process by which your unsecured creditors cannot pursue you for payment of your debts outside of the agreement. In Individual Voluntary Arrangements you agree to pay a single, reduced, affordable, monthly payment for a period between 3 and 5 years after which the unpaid part of the debt is written off by the creditors. The creditors are aware of this and are in agreement with it.
IVAs sounds too good to be true but they are true!
An IVA may sound too good to be true but it is the law and creditors like it. Creditors are usually willing to accept an IVA (Individual Voluntary Arrangement) because it stops them spending more money chasing debts that can never be repaid. It is also in their interest to accept a reduced payment because they not only recover some money but they derive tax benefits by doing so.
IVAs takes about 6-8 weeks to set up. During the repayment period all interest charges are frozen and all demands for money are stopped. Your creditors are not allowed to contact you. The Individual Voluntary Arrangement (IVA) is drawn up by a licensed Insolvency Practitioner who then administers the arrangement.
Are Individual Voluntary Arrangements right for you?
Your debts must exceed £15,000. You must be a private individual (not a company). You must have a regular income. You can be a home owner or a tenant. You must live in England, Wales or Northern Ireland. If you don’t quite fit these requirements we may still be able to help you. We can offer expert advice on the best solution for you.