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What is an IVA?


If you are in serious debt then you are not alone. More and more people in the UK are suffering from debt. This is why solutions such as IVA and debt consolidation are becoming more and more popular in addressing the debt issue.

So what is IVA?

An IVA or Individual voluntary arrangement, allows a debtor to ward off becoming bankrupt by coming to an arrangement with his creditors to pay off an amount of his debts over a given period.

An IVA is basically a negotiated agreement  between the person in debt, his insolvency practitioner and the people who the debtor owes money to. Usually this agreement involves th debtor paying a lump sum straight away to the creditors and the insolvency practitioner, then a number of monthly payments.

How much is repayed each month is based on the debtor’s income and outgoings. The repayment programme is a legally binding contract. If the debtor does not keep to the contract then the creditors will/may force the debtor into bankruptcy. If the majority of creditors do not agree to the IVA programme then it can not go ahead.


So what are the benefits for the Debtors?

Avoiding the stigma of bankuptcy

Severe penalties

Risk to future career prospect

It’s a way to reduce the amount that you pay back

It stops any further interest charges

It will reduce your monthly repayments


The IVA is an tremendously powerful tool enabling debtors to clear their debt and return to a clean financial bill of health.

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