IVA Advice - What is an IVA and How Does It Work?
IVA, Individual Voluntary Arrangement, is a legal contract which enables you to come to an agreement for paying back your creditors over a set period of time without becoming bankrupt. In order for the IVA agreement to go ahead you require 75% approval from the unsecured creditors. The chances are that your creditors will be happy to approve it as it means they are guaranteed to get a portion of their money back. If more than 25% of them don't think they will retrieve enough of their money back from it, they can block your IVA and you may have to consider Bankruptcy instead.
POINTS TO CONSIDER
Your debts must total to more than £15,000 (A Debt management plan covers debts that total less than £15,000).
You will be totally debt free in 5 years.
All Charges and interest are frozen on your debts.
Letters and phone calls will cease from creditors.
To qualify for an IVA, you must owe a minimum of 3 separate creditors.
The IVA agreement is supervised by a qualified Insolvency Practitioner during the IVA term.
An IVA is a serious consideration and if you don't keep up with the payments to your IVA, you may be forced into bankruptcy.
An IVA will appear on your credit file - This can be seen as a positive step as you are showing that you have taken control of your finances.
FREE DEBT ADVICE, help & information on any topic that we may not have covered within this website, but you require help with is available. Our aim is help you to regain control of your finances, reduce your debt or help you to get out of debt with lower monthly repayments and maybe write off some of your debt to ease the financial pressures that you may be experiencing.
Here are some links to recommended useful websites:
Consumer Credit Council Debt Help | Citizens Advice Bureau Debt Helpline | Government Debt Advice | More Useful Websites and Organisations
Important Security Advice
Free Debt Advice 4me never uses "pop-ups" to advertise its service and the web site never requests that you divulge sensitive information about your bank account, or details of your credit or debit cards. If you are ever asked to provide this kind of information then you can be certain that this is not part of the official Free Debt Advice service, and may be an attempt to clone or fraudulently access your personal credit details. If you are ever in any doubt about information requested, please contact us immediately to report any suspicious behaviour or requests to us.