What is an IVA?
An individual voluntary arrangement (IVA) is a legal procedure and a form of insolvency. Insolvency means having debts that are greater than the total value of your assets.
How do they work?
An Insolvency Practitioner (IP) will arrange your individual voluntary arrangement. They will propose to your creditors that all your available income (after you’ve paid your household bills) is used to make monthly payments to them. In some cases a lump sum is paid, or a combination of a lump sum and monthly payments. Monthly payments will continue for an agreed period, which is usually five or six years. After this time, your remaining debts will be written off.
Once your creditors approve the IVA proposal, they are prevented from taking legal action to recover the debt, provided you keep to the terms of the arrangement.
Your Insolvency Practitioner will review your finances once a year and send an annual progress report to you and your creditors. You will also be notified when the IVA has ended.
How can we help you?
Our online debt counselling service, CCCS Debt Remedy, can tell you if an IVA is suitable for you. Should you decide to go ahead with an IVA, CCCSVA, our inhouse IVA service, can support you through it.
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