An IVA also known as an Individual Voluntary Arrangement is a piece of government debt help legislation. It allows people in debt to avoid the pain of bankruptcy. If you owe greater than £15000 and you have multiple creditors then you may qualify for an individual voluntary arrangement. The IVA programme usually runs for 5 years. In that time you make fixed monthly payments that you can afford.
IVA Advantages
Your debt payments are based on your monthly income and expenses, so you will be able to afford the monthly payments.
Using IVA legislation total debt may be reduced by 75%.
At the end of the IVA programme, you will be totally debt free.
Legally binding contracts with creditors.
IVA Disadvantages
A fee is charged on top of your existing debt that covers the arrangement of the IVA.
