The IVA procedure was introduced in 1986 under The Insolvency Act and is a legal procedure where the person in debt pays back a percentage of what is owed in full and final settlement. The IVA is a well respected and widely used debt solution.
Why use an Individual Voluntary Arrangement (IVA)?
- A legally binding way to reduce the amount that you pay back
- A way to stop any further interest charges
- A way to reduce your monthly repayments
- This means more money in your pocket at the end of the month IVA Pros
- An IVA is private so your friends and family will not find out about it. The pros of this is that there is not social stigma with an IVA.
- After an IVA is completed you are debt free.
- An IVA acts as a safeguard to losing your home.
- A person subject to an IVA can continue to have a current account. Please note the person will not be allowed an overdraft facility though.
- An IVA will have a person debt free in up to 5 years.
- Up to 75% of your debt can be written off in an IVA
Useful resources:
The UK Insolvency Helpline
Address: The UK Insolvency Helpline, National Administration Centre, 788-790 Finchley Road, London, NW11 7TJ
Contact By:
Freephone: 0800 074 6918
Website: http://www.insolvencyhelpline.co.uk
Area Served: England, Scotland. Ireland and Wales
Opening/Appointment Times: Open 24 hours all year round including bank holidays
Areas of Work: The UK Insolvency Helpline is a national telephone helpline for people with debt problems in England, Scotland, Ireland and Wales. The service is free, confidential and independent. The service has existed since 1987 and was set up in conjunction the credit industry. The service provides self-help advice to its callers and also produces written self-help packs and fact sheets to back this up. The service can also assist callers with the setting up of Debt Management Plans and other insolvency arrangements. |
