An IVA or Individual Voluntary Arrangement is a formal agreement that you make with your creditors.You will make a payment every month for 60 months, which is 5 years. When the five years is over, your creditors will write off the remaining balance of your debt. This means you’ll be debt free.
If you’re considering this type of agreement, it’s simple to get by following just 4 steps
1.Know your capabilities. If you know you aren’t disciplined enough to make monthly payments for 60 months, then this may not be the solution for you.
2.Determine if you are eligible to apply for IVA. We will analyse your situation and provide you with a customised IVA proposal.
3.Use our IVA calculator and then apply for your IVA in just 30 seconds.
4.Sign the agreement and be debt free in 5 years.
Should you apply for IVA?
Before you apply for IVA, first think about how debt works. Unfortunately, when you miss payments or don’t pay in a timely manner, debt goes up because of interest and various fees. Also, you could end up in collections. In addition, the following things could happen as well:
- A bailiff shows up at your home and takes your car or household items
- Debt collectors show up at your home
- Debt collectors hassle you with emails, phone calls or text messages
- Your unpaid debt could negatively impact your current job or stop you from getting a new job.
What’s really going on?
You cannot get out of an IVA once you sign on the dotted line. It is a way to protect both you and your creditors. If you ignore your financial responsibilities, it could produce a bad outcome. Debt advice is only beneficial when you act in a timely manner.
Is an IVA right for you?
- Do you have more than £5000 of unsecured debt?
- Is it hard for you to keep up with your monthly payments?
- Do you consistently make more than £800 monthly?
If you answered yes, then this type of debt arrangement might be for you. If you are from Scotland, you’ll have to apply for a Scottish Trust Deed.
How does an IVA work?
Basically, you must make monthly payments for 60 months. The payment amount is based upon what you can afford to pay. Whatever balance is left after the five-year period is written off by your creditors.
An Insolvency Practitioner will take care of all your payments.
Legally, your creditors cannot contact you.
During the five years, all interest and charges are frozen so that the debt amount does not go up.
How do you apply for IVA? Take the first step by using our free IVA calculator.