When compared to other alternative solutions to debt Individual Voluntary Arrangements offer a number of advantages to both individuals and to their creditors.

If you owe more than £15,000 and are struggling to keep up with your debt repayments then an IVA could be the best solution.

With an Individual Voluntary Arrangement your monthly debt repayments can be reduced by as much as two thirds compared to the original credit agreements. In addition all interest and charges relating to the debt are stopped meaning that the debt does not continue to increase as the IVA progresses. Any legal action including bankruptcy proceedings is also stopped once an IVA is approved.

An IVA is usually a far more flexible solution than bankruptcy. Under the terms of the IVA you will only be asked to repay what can be reasonably afforded based on your current income. The IVA is a private agreement and unlike bankruptcy will not be publicised in your local newspaper. Additionally an IVA will not prevent you from being a sole trader or holding a directorship.

Individual Voluntary Arrangements can also be advantageous to your creditors especially if your only other option is to file for bankruptcy. The net returns seen by your creditors are usually higher than would be the case if you were to be made bankrupt. IVAs also have lower costs associated with them and creditors are able to claim tax relief on the bad debt against profits.

I-V-A.org.uk is part of a group of Licensed Insolvency Practitioners who are legally able to prepare and manage your IVA from start to finish. As part of our service we are able to provide you with free impartial debt advice to help you find the best solution to your debt problems. To speak to one of our advisors simply call us on freephone 0800 054 50 43 or alternatively complete our enquiry form.