If you’re dealing with debt and are struggling to make payments, an Individual Voluntary Arrangement (IVA) may be the solution you need. An IVA is a legally binding agreement between you and your creditors that provides a manageable way to pay off your debts.
The IVA process involves an insolvency practitioner (IP) who will work with you to create an affordable monthly repayment plan. The repayment plan is based on your income and expenses and is typically spread out over five years. Once the IVA is in place, your creditors can no longer take legal action against you, and any interest on your debts will be frozen.
IVA`s are a popular solution for those who are carrying unsecured debts such as credit cards, personal loans, and unpaid bills. However, if you have secured debts like a mortgage, an IVA may not be the best option for you. It’s important to speak with an insolvency practitioner who can help you determine if an IVA is the right choice for your unique situation.
One of the benefits of an IVA is that it can help you avoid bankruptcy. Bankruptcy can have serious consequences, such as losing your home or other assets, and it can also make it difficult to obtain credit in the future. An IVA is a more flexible solution that allows you to keep your assets while working towards becoming debt-free.
If you’re considering an IVA, it’s important to make sure that you use a reputable company. There are many companies out there that offer IVA services, but not all of them are trustworthy. Look for a company that is licensed by the Insolvency Practitioners Association (IPA) or the Institute of Chartered Accountants in England and Wales (ICAEW).
In summary, an IVA is a practical solution for those who are dealing with unsecured debts. It’s important to do your research to ensure that an IVA is the right option for your unique situation. Working with a reputable insolvency practitioner can help you determine whether an IVA is the right option for you and provide support throughout the process.