An IVA is a legally binding arrangement between you and your creditors, where they agree to an affordable monthly payment over a period of usually 5 years.
If you keep to the arrangement, your creditors will not chase you for payment. They will also not add any more interest to your balance unless your situation changes and you are able to pay the debts in full during the term of the IVA.
It is a form of insolvency, so your unsecured debts need to outweigh the value of your assets, such as property.
You cannot arrange an IVA without an Insolvency Practitioner (IP). Your IP will act on your behalf to draw up the proposal, hold a creditors’ meeting to get the proposal accepted, and support you throughout the arrangement. An IP will normally take the charge for their services out of your monthly repayment.

Before you consider applying for an IVA, it is important to first find out whether it’s the best option for you.
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