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INDIVIDUAL VOLUNTARY ARRANGEMENTS

There will always be those difficult times when the amount of unsecured debt belonging to a person reaches a level where full repayment becomes a completely unrealistic proposition. Changes in salary, employment status, asset ownership and outgoings can all contribute to this unfortunate shift in finances and the burden of debt can quickly intensify an already stressful situation. On completion of our Free Debt Review with a debt solution expert, it may be the case that some of your debt can be significantly reduced thanks to an Individual Voluntary Arrangement.

Individual Voluntary Arrangements, also known as IVAs, were introduced by the government in 1986 and have played a pivotal role in helping people to alleviate their debts by bringing all owing amounts together into one affordable monthly payment. Unlike Debt Management Plans, IVAs are legally binding agreements and so creditors are forced to freeze interest rates and charges as long as you keep up with your payments.

As well as rolling everything into one monthly figure, IVAs offer a huge advantage to debtors by significantly reducing the total amount owed to all creditors. They typically last for five years and, if you have kept up to date with your payments, any additional amounts owing will be written off in full up to a maximum of 75% depending on individual circumstances. This represents a great way to avoid bankruptcy, protect your assets and start taking control of your finances once again.

Sick of bailiffs and the threat of bankruptcy? As soon as an IVA is passed, all legal action against you must cease as you will have been entered into a fresh, manageable agreement with all of these companies – time to say goodbye to those menacing letters and constant phone calls!

Is Everyone Eligible for an IVA?
Although IVAs represent a great way to help clear spiralling debt, not everyone will be eligible and it’s also important to understand some of the potential pitfalls if anything goes wrong. As much as the companies you owe are legally obliged to cease chasing you for payment, you have an equally strong legal obligation to maintain your side of the bargain. Failing to meet the terms of an IVA may result in bankruptcy and they are considerably less flexible than Debt Management Plans.

Advantages Disadvantages
  • Reduce all of your debts into one affordable monthly payment
  • Freeze interest and charges on all of your accounts
  • Receive protection from legal action and bankruptcy
  • Monthly payments usually last no longer than 5 years
  • All remaining debt written off once payment term has been completed
  • Assets are protected and creditors must cease further action immediately
  • Creditors are not legally obligated to accept at IVA proposal
  • You will be registered on the insolvency register
  • Failure to maintain regular payments may result in bankruptcy
  • Applicants must have at least two debts from two different companies
  • Your ability to take on credit in the future will be severely affected for up to six years
  • Not available to those bound by Scottish Law

There are many other factors to take into account when determining your suitability and eligibility for an IVA including your geographical location, number of creditors and total outstanding debt, however our fully trained debt solution experts will discuss these with you following your Free Debt Review.

So with that in mind, why not get back on the road to financial freedom by getting in touch with one of our expert consultants today and find out how we can help you to find the perfect debt solution!

 

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When people are struggling with debt it's more important then ever that they have access to effective advice. We work with partners to make debt advice easier and quicker to access, and to improve standards and quality across the sector.

Visit the Money Advice Service website for further info >>

OUR SERVICES
Free No Obligation Debt Reviews
Debt Management Plans
Individual Voluntary Arrangements
Trust Deeds/Sequestration
Bankruptcy Service
Debt Solutions for Scottish Clients
Repossesion/Eviction Advice
Self-Help Budgeting Advice

 



USEFUL LINKS
www.bis.gov.uk/insolvency/Publications
www.moneyadviceservice.org.uk
www.citizensadvice.org.uk
CONTACT US
Email: feedback@debtfreeadvice.co.uk
Call Us: 0800 781 7615
 

IMPORTANT INFORMATION: Debt solutions subject to conditions and acceptance. Your ability to obtain credit will be affected in the short term and may also be affected in the medium to long term. Paying a lower amount each month may increase the time taken to repay the debt. The total amount our client's repay towards their debts may increase on certain debt solutions. If you enter into an individual voluntary arrangement (IVA), a debt relief order (DRO), a protected trust deed or becoming bankrupt the details will be recorded in the Insolvency Register.

* The free debt review consists of a detailed telephone interview with one of our Personal Finance Advisors who are experts in giving debt and money advice, and are regulated by the Financial Conduct Authority (FCA). This is completely free of charge, with no obligation, and you will be given a detailed breakdown of what your options are. If you chose to take one of the solutions offered to you by one of our chosen partners, there may be fees included. However you will be made aware of those before you contract in to any agreement, and you will be given plenty of time to think about what you want to do before making a decision. At no stage are you under any obligation and you are always protected by your consumer rights.
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