January 2008

IVA - Individual Voluntary Arrangement: IVA Help and Advice

An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors. It helps to reduce your payments towards the total amount you owe to your creditors. Usually, by paying off a certain percentage of the total amount after 5 years your debt is considered settled. The person acting as an agent between you and your creditors is called an Insolvency Practioner (IP) who must be a licensed professional.

IVA is not a new thing

With the increasing debt situation in the UK, IVAs have become a popular way of solving debt problems. Over 40,000 people enter IVAs each year (www.iva.co.uk). It is a highly ethical and trustworthy way to solve your debt problems as well as highly regarded way to avoid bankruptcy.

With IVA you will pay only what you can afford. While IVA agreement is in place, your creditors have no legal right to demand payments directly from you neither by letter nor by phone.