INDIVIDUAL VOLUNTARY ARRANGEMENTS (IVAs)

An Individual Voluntary Arrangement (IVA) is an agreement between you and your creditors whereby you make funds available for distribution between the creditors bound by the agreement.

This usually involves making one monthly payment out of your income for a set period of time and, if you have any assets such as equity in your property, endowment policies etc you may have to make some of this available to creditors as well.

Can I apply for an IVA?

If you are unable to pay your debts as they fall due you may apply for an IVA. This applies even if you have assets that, if sold, would cover your debts.

If you are already subject to a Bankruptcy Order you may still apply. If the arrangement is approved, your Bankruptcy is annulled.

Benefits?

• Interest and charges on your debts are frozen

• Creditors stop ringing and writing to you - they contact the Supervisor of the IVA

• Once your obligations under the IVA are fulfilled, your debts are then written off

• You potentially avoid bankruptcy

• Your credit rating is not as seriously affected as in bankruptcy

• You can continue to trade.

IVAs - peace of mind for people with serious debt problems

Under an IVA...

• You will only pay what you can afford
• You will not pay any fees
• Your creditors will stop hassling you
• Up to 90% of your debt will be written off
• Interest will be frozen
• A single monthly payment will replace all your unsecured debt payments

At the end of the IVA your debts will be cleared.