Individual Voluntary Arrangements were introduced by the government as part of the Insolvency Act 1986. They are designed to provide formal help to people with overwhelming debt problems.

Whereas previously people experiencing financial difficulties may have had no option but to file for bankruptcy the introduction of IVAs has provided an alternative solution. Bankruptcy is often a ‘lose – lose’ situation where neither the person in debt or their creditors really benefits. The person becoming bankrupt risks losing all their major assets including the family home and at the same time creditors usually get little or no return at all on the debts The intention of IVAs was to provide a better solution for everybody involved.

Under the terms of an IVA all of your debts are consolidated down into one single monthly repayment. The size of this payment varies from case to case and is calculated based on what you can reasonably afford to pay on your current income.

A typical IVA will last for five years at the end of which all remaining unpaid debt will be written off by your creditors. One the IVA is agreed all interest being charged on the debt is stopped as is any legal action being carried out by your creditors such as bankruptcy proceeding.

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.