IVA stands for individual voluntary arrangement. An IVA is a legal procedure designed to help people with unsecured debts.
An IVA is a form of insolvency. This means that in order to apply for an IVA your unsecured debts need to be greater in value than the total value of any assets you own, including any property, such as your home.
An IVA is a legally binding agreement between you and your creditors. With an IVA, your creditors agree to accept an affordable monthly payment towards your debts over a set period: usually 5 or 6 years.
In some cases, you might be able to make a lump sum payment toward your debts instead, or a combination of monthly payments and a lump sum.
During the period of your IVA, providing you keep to the terms of your agreement, your creditors are prevented from contacting you, pursuing you for the debt, or adding further charges or interest to the amount you owe.
At the end of the specified period any remaining unsecured debt will be written off.
You cannot arrange an IVA by yourself, you will need the help of an Insolvency Practitioner.
Free, impartial IVA advice
IVAs are not suitable for everyone and we strongly recommend that you get professional, impartial debt advice before taking on an IVA.
Our debt counsellors and online CCCS Debt Remedy service can give you the free, realistic advice you need to find out which is the best debt solution for you.
If an IVA is the best debt solution for you, CCCSVA, our own IVA service, can help you through the process.