INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA)

WHAT IS AN IVA?
An IVA or Individual Voluntary Arrangement is a legally binding agreement with Creditors. It allows someone who is in financial difficulty to make a formal proposal to settle his/her debts within a reasonable and fixed period of time - normally 5 years. The repayment proposal is based on what you can afford to pay. After the agreed payment period, any outstanding debt will be legally written off by your creditors.

An IVA will overcome the disadvantages normally associated with the informal Debt Repayment Plan. Particularly, the IVA allows you to be debt free in 5 years. A single affordable payment is made each month for 60 months and under the law, your creditors must freeze all further interest or charges. Once the final payment is made, Creditors agree to legally write off any outstanding debt. As such, the IVA offers a solution with a specific end date so you know exactly where you stand and when your debts will be over for good!

Advantages of an IVA:
	Single affordable monthly payment.
	Fixed repayment period (normally no more than 60 mths) with a specific end date giving Light at the End of the Tunne.
	Creditors must freeze all further interest and charges.
	Once the final payment is made, any outstanding debt is legally written off by the Creditors.
	Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
	Once the final payment is made, any outstanding debt is legally written off by the Creditors.
	Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
	Current and Future CCJ’s overturned.
	Protection from court action by creditors.
	The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.

Disadvantages of an IVA
	Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind.
	The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.
	Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.
	If you are a home owner, during the course of the IVA you may have to release available equity from your property to increase the overall settlement offer to your creditors.

WHAT WILL AN IVA COST?
At Thomas Charles we pride ourselves on our quality of work.

Our fees:
We charge 2 extra payments (so your IVA is 62 months rather than 60 months). These payments are based on your affordable income and you would need to talk to an advisor to find out more. Click here for a list of advisors.
PLEASE NOTE: These two payments are refunded if the IVA is not accepted.

What do Thomas Charles spend the 2 extra payments on?
-If you proceed with Thomas Charles you will get 2 dedicated personnel to work on your case until the IVA is accepted (a senior advisor and an assistant advisor).
-You will be given an emergency contact number for your senior advisor should you have a problem out of hours (e.g. creditors hassling you).
-The complex 14 page Statement of Affairs IVA proposal will be filled out on your behalf by your senior expert advisor (after detailed consultation with you), this will maximise the chance of your IVA being accepted.

99% success rate and Thomas Charles Promise
-If we decide to take on your IVA case and we fail to get the IVA accepted then we will pay you a compensation fee of £250*.
-If you would like to have an informal chat with an advisor to find out more please view our senior advisors here.
* In very rare cases this promise may be withdrawn (at the very beginning of our discussions with you) if you have creditors who are aggressively declining IVAs (e.g. the Northern Rock Together Loan).