Debt Lands have a proven track record when it comes to helping clients solve their debt problems. With an IVA (Individual Voluntary Agreement) you could be debt free in as little as five years!
What is an IVA (Individual Voluntary Agreement)?
IVA stands for Individual Voluntary Agreement. An IVA is a formal agreement between you and your creditors, in which you will mutually arrange a series of reduced payments towards the total amount of your debt. An IVA is one of the best ways to avoid bankruptcy and its consequences.
Can an IVA help with your particular debt problems?
IVAs may be suitable if you have a regular income and wish to seek an alternative to bankruptcy. You need to be able to meet agreed payment terms over a fixed period, with the aim of paying your debt in a five year period.
Do not confuse an IVA with a Debt Management plan.
Be careful not to confuse an Individual Voluntary Arrangement (IVA) with one of our Debt Management Plans (DMP). It may be that one of our Debt Management Plans is more suitable to your current situation.
Everything has benefits and pitfalls, and the same has to be said about IVAs. Below we outline some of these in the hope that they will help you to make the right decision.
The Benefits of an Individual Voluntary Arrangement (IVA):
• Consolidation of all your debts into monthly manageable payments.
• All interest and charges on your unsecured debts will be frozen.
• All unsecured creditors will be bound by the IVA.
• No more debt collectors or bailiffs will call.
• Your debts are effectively written off, providing you with a fresh start.
• Your contributions are based on your ability to pay.
• Unlike Bankruptcy your name will not published in local newspapers
• Unlike bankruptcy it will not affect future professions in the Police Force and Armed Forces, nor will it impact on your ability to hold public office or act as a company director.
Some of the disadvantages of an IVA:
• You will be required to stick to a strict budget for the term of the arrangement.
• You will not be able to get additional credit.
• All assets and liabilities must be declared: if you own assets of excessive value, the creditors can ask that they be released for the benefit of the creditors.
• You will be tied into the agreement for the term.
• You will be asked to release some of the equity from your property towards the last six months of the arrangement
• Your credit file may be affected
• Any windfalls, inheritance or bonuses must be declared to the Supervisor of the arrangement.
• All Individual Voluntary Arrangements are recorded on a public register and are likely to appear on your credit file.
• Failure to comply with the IVA may lead to bankruptcy
Still unsure what to do?
Call an adviser now for free advice on 0161 371 7187 or request a callback (see the form on the right side of the page).
