Individual Voluntary Arrangements

An Individual Voluntary Arrangement - IVA is a formal contract or arrangement between you and your creditors where you will come to an agreement with people you owe money, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe. This is the main purpose of IVA. Generally after 5 years your debt is classed as settled.  Due to its formal nature, an Individual Voluntary Arrangement - IVA has to be set up by a licensed professional called an Insolvency Practitioner (IP).

Based on your income and affordability, you can arrange for monthly payments to clear the arrears. This can be done within a reasonable and fixed period of time (normally 5 years). Any interest and debt charges will be frozen and creditors will be forbidden from demanding additional payments. Once the final payment is made, any outstanding debt is legally written off. The arrangement can write off up to 65% of your debts (subject to your circumstances).

IVA Glossary

Asset

Property belonging to someone. They are categorised in two sections; real property such as building and lands or personal property such as cars, vehicles, jewellery and other cash assets.

County Court Judgement

This is a legal ruling from the court. This requires you to pay back your creditors.

Credit History

Credit history holds all the information about your financial transactions. Money you have borrowed in the past. Money that you still owe or any failed repayments. This is used to work out your credit rating.

Credit Rating

A credit rating is used to give you a unique rating suggesting how investable you are. Credit companies will look at this rating to determine how much money you can borrow. There are a number of factors that are taking into account, your employment, banking, housing and other financial information.

Credit Reference Agency

These are companies that hold your credit data. The major ones in the UK are Equifax, Credit Expert, and Call-Credit. You can request your credit file from them for a nominal fee.

Creditor

Person or Company you owe money to.

Debtor

A debtor is someone who owes money. If you have borrowed money off someone, you are their debtor.

Equity

This is a person´s real property value after deducting all charges and liens

Interim Order

An Interim Order is granted by the court after you have given in your proposal to halt all actions from the creditors.

Insolvency Expert

An insolvency expert is a Licensed Practitioner who will be dealing with your IVA. They will normally act as the supervisor once the IVA has been agreed upon.

Lien

A lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.

Repossession

If a creditor is not paid back the money they are owed, they can repossess your belonging in order to pay for the debt.

Statement of Affairs

The listing of a debtor's assets and liabilities and sworn under oath by the debtor before a lawyer or Commissioner for Taking Oaths.

Why use us to set up your IVA?

If you have debts over £15,000 than our Insolvency Practitioners can help you by proposing an IVA plan for you. Our Practitioners are industry regulated with many years experience in dealing with people like yourselves. We believe in providing honest, professional and reliable service. Fill out our online no obligation enquiry form to arrange a callback from one of our specialist Insolvency Practitioners. They will be happy to listen to you and devise a plan that is best suitable for your situation.