IVA (Individual Voluntary Arrangement)An Individual Voluntary Arrangement is a solution that has been set up by the Government to help individuals who are struggling with debt. An IVA typically lasts for 60 months (sometimes 72), at which point at the end of this time frame, you will have a portion of your debt written off. During your time on the IVA you will have to make a contribution each month towards the IVA, this will be based on your calculated disposable income.
An IVA is not suitable for everyone, as peoples circumstances are totally different. What’s right for one person is not right for another. Our trained advisors will be able to tell you on the first call whether or not we can help and which route would be best for you.
The IVA solution does affect a clients credit rating typically for 6 years, however most people just want an end to their worries and as such don’t want to be adding to their debt whilst they obtain help. A licensed insolvency practitioner has to set up an IVA, an individual cannot just do one themselves. Once an IVA is set up there will be an agreement with your creditors that will freeze interest and stop any charges so your debt balance does not increase as well as protection from further action by your creditors.
Case StudyMr and Mrs N, from Gwent.