IVA (Individual Voluntary Arrangement)

What is an Individual Voluntary Arrangement (IVA)?

Individual Voluntary Arrangements were introduced by the government as part of the Insolvency Act 1986 as a way to provide debt relief to people without the need for bankruptcy. Under the terms of the IVA you commit to paying a single affordable monthly payment for a fixed period of time. These payments are then distributed to your creditors to pay off your debts. At the end of the IVA any remaining debts will be written off leaving you debt free.

How do I qualify for an IVA?

To qualify for an IVA you will usually need to meet the following criteria –

  • debts of greater than £15000 that you are unable to repay through the release of any material assets you have
  • your debts should be divided between at least three separate creditors
  • you should be in regular employment and be able to make repayments high enough to satisfy your creditors
  • for the IVA to progress you will need the agreement of at least 75 percent of your creditors

What are the benefits of an IVA?

If you are suffering from serious debt problems then entering into an IVA offers a number of benefits –

  • all your debt repayments are consolidated into one affordable monthly payment
  • at the end of the IVA all your remaining debt is written off leaving you debt free
  • once you enter into the IVA all interest and charges are stopped meaning your debt doesn‘t increase
  • your monthly debt repayments can be reduced by up to two thirds
  • the IVA is a completely private agreement between you and your creditors

How do I apply for an Individual Voluntary Arrangement?

Reduce Debt.org.uk is part of the Spencer Hayes group of financial advisors. Our Insolvency Practitioners are specifically authorised to set up and arrange Individual Voluntary Arrangements. If you are having debt problems your first step should be to speak to one of our impartial debt advisors. We will discuss your financial circumstances and the debt relief options available to you. Simply call free on 0800 043 73 60 or complete out enquiry form and we will call you back.