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Individual Voluntary Arrangements

One possible solution for people with debt problems is to enter into an Individual Voluntary Arrangement (IVA).

What is an IVA?

An IVA is a formal agreement made between a person in debt and their creditors. IVA's were introduced as part of the Insolvency Act 1986 as an alternative to bankruptcy. Often an Individual Voluntary Arrangement is preferable to bankruptcy for both debtors and creditors. Only Licensed Insolvency Practitioners such as ourselves are able to administer IVA's.

Qualifying for an IVA

To qualify for an IVA you must usually have debts in excess of £15000. These debts must also be divided between at least two separate creditors. Individual Voluntary Arrangements are only available for people based in England, Wales or Northern Ireland. For people in Scotland the equivalent of an IVA is a Protected Trust Deed.

IVA Fees and Repayments

If you are entering into an IVA then at no point should you be asked to pay any fees upfront. During the IVA you will make a single monthly payment based on your current income. These repayments are then distributed to your creditors. Typically IVA repayments will be made for a period of five years although there is some flexibility in this.

The IVA Process

The first step in the IVA process is to contact a professional financial advisor such as ourselves who will discuss the suitability of an IVA to your circumstances. If an IVA looks to be the best solution to your debt problems then the next step is to determine the amount of your monthly repayments. This amount will be set according to what you can resonably afford based on your current income. Next an IVA proposal will be presented to your creditors who vote to either accept or reject the IVA. Generally for the IVA to be accepted it must offer a higher return to your creditors than would be the case if you were to be made bankruptcy. If accepted the IVA will last for around five years at the end of which any remaining unpaid debt will be written off leaving you debt free.

Benefits of IVAs

Individual Voluntary Arrangements offer a number of advantages when compared to other alternative solutions to debt. With an IVA as much as two thirds of your debts may be written off. Unlike a Debt Management Programme the agreement is legally binding and offers protection from any legal action taken by your creditors. An IVA also can help prevent reposession of your home. The agreement is also private and unlike bankruptcy wont be publicised in your local newspaper.

How We Can Help You

Debt Consolidation is part of the Guardian Insolvency Group of Companies. Guardian Insolvency is one of the UK‘s Leading Insolvency Practitioners – completely dedicated to helping you overcome your debt and insolvency problems.

All of our staff members are highly trained to help people meet their goal of long term financial stability. Our teams of Licensed Insolvency Practitioners and specialist debt advisors are professionally bound to provide immediate, completely impartial and confidential advice to consumers across the UK.

If you are having financial problems and would like professional assistance then contact us today and allow us to help you. Either call us on freephone 0800 043 50 43 or alternatively complete our debt advice enquiry form.

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