Innovative Finance

Individual Voluntary Arrangement (IVA)

Individual Voluntary Arrangment (IVA) If you want to know the day that you will be debt free and eliminate the pressure from creditors that you cannot afford to pay, we can assist.

What is an IVA?

An Individual Voluntary Arrangement is sometimes referred to as a Voluntary Arrangement or shortened to IVA.

An IVA is a formal agreement between you and your creditors to make a single reduced payment each month. This lasts for an agreed period of time – usually 60 months. Once agreed, creditors are not legally allowed to add interest or charges towards your unsecured credit commitments.

The IVA payments are set at the outset, meaning that creditors cannot randomly demand payment increases. Ongoing payments are subject to your personal circumstances and this allows you to pay off an affordable portion of your debt every month.

IVA Benefits

• One lower monthly payment
• Interest and charges stop, so your debt cannot increase
• You won't lose your home
• Write off a substantial amount of your debt
• No more creditor calls or letters
• You only pay back what you can afford
• A fixed repayment period (usually 60 months) with specific end date
• Once you have made the final payment, your creditors are legally compelled to write off your outstanding balances. As long as the terms of the IVA have been adhered to, creditors cannot go back on the agreement and enforce increased payments
• Protection from court action by creditors
• The IVA is discreet and can be used by professionals, forces personnel and police without damaging career prospects.

UK Individual Voluntary Arrangements are a formal legal agreement and will affect your credit rating for up to 72 months after completion. Homeowners may be required to remortgage in the 5th year of the IVA.

Failure to adhere to an IVA could result could result in bankruptcy

 

Data protection registration number: Z1633988, Innovative Finance.co.uk Ltd is regulated by the Ministry of Justice in respect of regulated claims management activities. Authorisation number: CRM16687. Registration office 103 Bradley House, Radcliffe Moor Road, Bolton, Lancashire, BL2 6RT. Company registered in England and Wales. Number 05739051. Consumer Credit Licence number: 5739051.