IVAs
IVAs
All you need to know about Individual Voluntary Arrangements
You’ve already taken the first step to solving your financial difficulties by making contact with us here at Thomas Charles. You’ll be pleased to know that many people find that making the first contact was the hardest step.
Our aim is to help you make an informed decision about where you go from here and after talking it over with one of our advisors, if you’re considering an Individual Voluntary Arrangement (IVA), what sort of things do you need to know? The below answers should provide you with all the information you need to make that informed decision. If, however, you find you’ve got more questions, just speak to your advisor.
What is an IVA?
An IVA is a legally binding agreement between you and those you owe money to (ie your creditors). It forms part of the 1986 Insolvency Act, and is an alternative to bankruptcy. An IVA is suitable for people who are unable to pay their creditors in full, but can afford to make reasonable monthly payments.
An IVA, once agreed, offers you protection from your creditors as long as you agree to its terms and conditions. Under an IVA, all interest and charges are frozen, your creditors will cease calling or writing to you directly for any money or payments and deal directly with your Insolvency Practitioner. At the end of the IVA term, usually 60 months, any amount you have not been able to pay back will be written off.
