IVA - Individual Voluntary

Arrangement

An Individual Voluntary Arrangement, or IVA, is a contractual agreement administered by a qualified insolvency practitioner between an individual in considerable debt and their creditors. An IVA is on occasion referred to as an Individual Voluntary Agreement.

The contractual agreement is designed to accommodate the individuals own circumstances, such as their income and expenditure. Once this has been taken into account and if the debtor has enough money left over, then an IVA can be arranged, where an established number of monthly payments to the individuals creditors will then be agreed upon.

At the end of the term, so providing that all agreed upon repayments have been made, the remaining debt can then be written off.

An IVA is an alternative for individuals that hope to avoid Bankruptcy. However, an IVA, as well as bankruptcy, should only ever be thought of as a last resort as this can adversely affect your credit rating.

An IVA will remain on your credit report for six year from the date of registration. If you complete an IVA then you should ensure that this can be seen on your credit report. If this does not show you should provide Credit Reference Agencies with the relevant documentation to show that you have satisfied the IVA so your credit report can be updated. How to get your credit report

If you are finding it difficult to keep up with your repayments then you should contact your creditors in the first instance. Explain your situation to them and mutually you may be able to come to some sort of agreement. If this can be done you may be able to avoid being issued with a Default or CCJ (County Court Judgement).

If you cannot come to an agreement with your creditors directly then do seek advice as individuals in more favorable circumstances may be suitable for Debt Management.

IVA ­- Individual Voluntary

Arrangement

IVA - Individual Voluntary