What is an IVA?
Whether or not you have already been looking into debt solutions, you may have heard of an IVA. But just what is an IVA?
IVA stands for Individual Voluntary Arrangement. And that really is exactly what it is. It's an agreement between you and your creditors that essentially sets out a repayment plan for your debts. Unlike a more informal debt management plan, an IVA is a legal arrangement between you (the debtor) and your creditors. It is drawn up through a licensed Insolvency Practitioner.
In essence, with an IVA, you agree to pay a single set fee each month for a given period of time (most often, this is 5 years). This monthly fee is based on:
In some cases, up to 75% of your total debts could end up being 'written off.'
IVA stands for Individual Voluntary Arrangement. And that really is exactly what it is. It's an agreement between you and your creditors that essentially sets out a repayment plan for your debts. Unlike a more informal debt management plan, an IVA is a legal arrangement between you (the debtor) and your creditors. It is drawn up through a licensed Insolvency Practitioner.
In essence, with an IVA, you agree to pay a single set fee each month for a given period of time (most often, this is 5 years). This monthly fee is based on:
- Your debts and creditors
- Your income
- Thus, what you can realistically afford to repay.
In some cases, up to 75% of your total debts could end up being 'written off.'
The Main Benefits of an IVA
There are a host of benefits to an IVA. Just some of them include:
- It's a very realistic alternative bankruptcy for those who find themselves insolvent.
- One repayment is a convenient means of repaying. You no longer have to worry about making several payments to different creditors.
- The repayments are based on what you can actually afford to repay!
- Some of your debts, if they are deemed unaffordable, could be cancelled.
- With a period of time for repayments determined at the outset, you have a goal - a date on which you know your debt problems will be solved.
- Peace of mind - knowing your debts are being dealt with.
Get Started with an IVA
If you think you might benefit from an IVA, you need to seek professional advice. You can speak to a qualified Insolvency Practitioner from IVA Zebra to find out whether this could be the right debt solution for you.
