An Individual Voluntary Arrangement maybe better known as an IVA. An Individual Voluntary Arrangement is an agreement between you and your creditors to make your personal debts more affordable by reducing your monthly contributions to these debts.
It is , in some ways, similar to a debt management plan in that it reduces your monthly outgoings. However, an IVA is more highly regulated and is supervised by a qualified Insolvency Practitioner.
An Individual Voluntary Arrangement is an arrangement whereby an Insolvency Practitioner will negotiate with your creditors on your behalf in order to reduce your monthly payments on unsecured debt such as personal loans and credit cards to a more manageable level and seeks to protect a family home should this be owned by the debtor.
It will take into account essential items and then calculate an affordable monthly contribution from this information.
An IVA would generally run for a period of 5 years at which time, any outstanding balance would be legally written off. There are circumstances where an arrangement maybe extended for a further period.
Creditors will vote on your proposal and 75% of votes (in value) must be in favour of it. Creditors can suggest modifications to your proposal and you can choose whether to accept them or not.
Contributions in to an Arrangement are divided between your creditors and disbursements made to them by your Insolvency Practitioner. Fees for arranging and supervising the Arrangement are taken from your monthly contributions so your payment or indebtedness would not increase due to any relevant fees.
X-debt provides genuinely independent and confidential free Individual Voluntary Arrangement advice and without obligation. We review all your finances with you, confidentially, in order to establish your financial situation. Only then would we recommend an IVA or inform you whether it is appropriate. The final decision lies with you. In the first instance you can try our IVA calculator or call us on 0800 043 2424 or 0161 787 3400.