IVA (Individual voluntary arrangement)

An individual voluntary arrangement is more commonly know as IVA, and is a formal arrangment set up via the county court.  In some circustances as much as 80% of your total debt can be written off.  This figure should not be used as a benchmark as the level of debt that is writen off is down to each individuals circumstances.

The normal term for repayment for an IVA is 5 years.  There is also an option to arrange an IVA using one lump sum payment, although this is less common.

At least 75% (by value) of your creditors must agree to the IVA in order for it to be put in place.

You will need an insolvency practitioner to set up your IVA.  Should your circumstances suggest an IVA maybe suitable Credit Hero can intorduce you to an insolvency practitioner who will assess your circumstances.   We work with a panel of IVA practitioners and they all follow the protocols set down.

IVA’s are not suitable for everyone and we would not recommend you rush into such an arrangement.  Our insolvency practioners will only proceed if it is right for your circumstasnces and you fully understand the process.

Advantages of an IVA are there is no publicty and they have less stigma than bankrupcy.  Entering into an IVA will affect your credit rating and it will be recorded on the public individual insolvency register.

In order to enter into an IVA you must have a reasonable amount of spare monthly income and or a lump sum.

In certain circumstances you can exclude your assets such as your home or car if your creditors agree.

There are many companies who will try and arrange an IVA for you even if it is not in your best interests, Credit hero is not one of them.

If you are considering entering into an IVA and want advice and help then please complete the form below or call our free phone number 0800 612 4136

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