Individual Voluntary Arrangement (IVA)

What is an IVA?

An IVA (Individual Voluntary Arrangement) is an agreement between you and your creditors to help you pay off your debts at an affordable rate. It allows any unsecured debts to be written off at the end of the IVA, and will usually mean your creditors get more of their money back than if they force you into bankruptcy. The IVA helps those in financial difficulties to make a formal proposal to settle their unsecured debt within a reasonable timeframe. All interest and charges will be frozen to 0% and creditors will be prohibited from demanding additional payments.

IVA Debt Helpline

Write Off Up To 70% Of Debt

Take advantage of this help scheme and write off up to 70% of debt.

Stop Creditors Contacting You

Once on an IVA it is illegal for your debtors to chase you for the debt.

Government Backed Solutions

Schemes the government brought in to help people with certain debt levels.

Freeze Interest And Charges

Freeze interest & charges on debts, and make them easier to repay.

Free To Use Service

Help with unsecured debt and free advice on practical debt solutions.

Free IVA Debt Advice

Get more information about an IVA and alternative debt solutions.

Find Out If You Qualify For An IVA And Start Your Debt Free Journey.

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Why Use Free Debt Helpline

Knowing the impact that personal debt can have on us, our family and our life can be overwhelming at times but there is a light at the end of the tunnel. Free Debt Helpline strive to help people find the right debt solution to solve the current debt situation. All debt help from Free Debt Helpline is free to you and whatever the nature of your debt problem is we can help you. We can help you with advice on credit card bills, personal loan arrears, mortgage or rent arrears and what to do if you get behind with the gas or electricity bills and more. Find out what solution will be the most affordable for you and start managing your debt the way you want to.

Things To Consider Before Choosing An IVA

An IVA Is A Legally Binding Agreement

The idea of an IVA is to pay an affordable amount to your debt for 60 months and at the end of the 60 months you will debt free. If for any reason you can't pay one month it will be added on to the end of the IVA so it can usually go up to 72 months maximum.

Choosing What's Affordable For You To Pay

IVA payments are based on affordability, which means that you should not be expected to repay more than you can actually afford. But, on a second level, there is also a relationship between the size of the debt you owe and the amount creditors will expect you to repay.

Potentially Having To Release Some Equity

Unlike with bankruptcy, where ownership of your home is passed to the official receiver or trustee in Bankruptcy to release any beneficial interest by whatever means necessary, one of the main advantages of an IVA is that your house is protected.

IVA Alternatives

Bankruptcy

Declaring yourself bankrupt is a legal status that usually lasts for a year (see ‘How long does bankruptcy last’ below) and can be a way of clearing debts you can’t pay.When you’re bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors (those you owe money to). At the end of the bankruptcy period, most debts are ‘discharged’ (cancelled)

 

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Debt Management Plan (DMP)

Debt Management Plans are available across the UK although people don’t take advantage of them. So regardless of where you live in the UK, if you’re struggling to keep up with payments to your debts. A DMP can help get everything in order, therefore making things that little bit more manageable to help ease stress over debt problems.

 

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DRO

A debt relief order (DRO) is a way to have your debts written off if you have a relatively low level of debt and have few assets. If you qualify, our specialist DRO team can apply to the Insolvency Service for you. Debt relief orders are not available if you live in Scotland.

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IVA FAQs

How Do I Apply For An IVA?

To arrange an IVA, your proposal must be a full and true account of your current financial situation. If you match the IVA criteria then you may be able to get a percentage of your debt written off. Get in touch to see if you qualify.

What Are The Advantages Of An IVA?

Main advantages of an IVA; Legal protection from your creditors, interest and charges are frozen, your Home is protected, debt may be often written off, you pay what you can afford and you are debt free after a fixed period of time.

What Are The Disadvantages Of An IVA?

Main disadvantages of an IVA; Failure to complete your IVA will mean you may have to go bankrupt, home equity may have to be released, all assets and liabilities must be declared and you will be required to stick to a budget for the term of the arrangement.

What Debts Are Covered In An IVA?

An IVA will help make clear your unsecured creditors, ie; unsecured loans, credit cards, store cards, council tax bill etc. It works best if you have more than one creditor and a disposable income each month to pay back the debt.

Can I Set Up An IVA Myself?

IVAs are legally-binding and can be highly complex to set up, so you’ll need to speak with an Insolvency Practitioner (IP) if you are thinking about entering into an IVA. When debt becomes unmanageable, the situation can be very worrying, however there’re a number of debt solutions which may be available to help people with out of control debt problems.

Will An IVA Affect My Credit File?

Once an IVA is completed, your details will be removed from the Individual Insolvency Register after three months. Details of the IVA will be held on your credit file for six years from the date that the IVA starts. With that being said if you have any defaults on your credit history, that usually will stay on your credit file for 6 years anyway.

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