An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.
An IVA can give you more control of your assets than bankruptcy.
You have to use an insolvency practitioner (use ‘Kent’ as a town to obtain a list) to get an IVA. Ashford Advice do not have an insolvency practitioner
Your insolvency practitioner works out what you can afford to repay and how long the IVA lasts. You’ll have to give details about your financial situation, for example your assets, debts, income and creditors.
Your insolvency practitioner will contact your creditors. The IVA will start if the creditors holding 75% of your debts agree to it. It will apply to all your creditors, including any who disagreed to it.
An IVA will stop your creditors taking action against you for your debts.
There are usually 2 fees:
- a set up fee
- a handling fee each time you make a payment
Make sure you know how much it’s going to cost before asking an insolvency practitioner to act for you.
Your IVA will be added to the Individual Insolvency Register. It’s removed 3 months after the IVA ends.