An IVA is a legally binding arrangement between you and your creditors, where they agree to a fixed affordable monthly payment over a fixed term (usually five 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 balances unless 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. Your Insolvency Practitioner 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 Insolvency Practitioner will charge for their services.
Before you start consider applying for an IVA, it is important to first find out whether it’s the best option for you.
If you want to know if an IVA is suitable for you can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.