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Individual Voluntary Arrangement (IVA)


An IVA is a legally binding agreement between you and your creditors. It enables you to repay your debts at an affordable rate over a fixed period, usually five to six years. With an IVA, you make a single monthly payment to an insolvency practitioner who distributes the funds to your creditors.

One of the benefits of an IVA is that it stops any further interest and charges on your debts, which can help to reduce the overall amount that you owe. Additionally, once the IVA is in place, your creditors cannot take any legal action against you or pursue any further recovery of your debts.

To be eligible for an IVA, you must have at least £6,000 of unsecured debt and have at least two creditors. You also need to be able to afford to make regular payments towards your debts.

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Advantages Of An IVA

  • The IVA will reduce the monthly payments you make to one affordable payment based on your circumstances and guidelines acceptable to creditors.
  • If the IVA is approved by 75% of your voting creditors (by value) anyone who votes against is still bound by it.
  • There is likely to be a proportion of your debt written off by your creditors.
  • Once the IVA is approved no further interest can be charged and on successful completion of the IVA, the balance of what you owe creditors is written off.
  • It offers legal protection from your unsecured creditors so they can’t take any further action against you.
  • It is for a fixed period of time (usually 5 years; it may be extended to deal with any change in circumstances or if you have equity in your property).
  • You may be able to continue to run any business you have.
  • It offers you the ability to protect any assets you may have such as your house or car.

Considerations Of An IVA

 
  • Creditors may propose changes to the terms & conditions of your proposal, which may have to be accepted for your IVA to be approved.
  • The IVA may adversely affect your credit record for up to 12 months after your IVA has been successfully completed and you won’t be able to obtain any further credit while you’re IVA is active.
  • If you have a change of circumstances or are unable to comply with the existing IVA proposal, creditors may agree revised terms. If the creditors do not agree, the IVA is likely to fail and you will remain liable for your debts and may be made bankrupt (although in most circumstances even when cases fail, we do not petition for bankruptcy).
  • Your IVA is entered onto a public register.
  • You will remain liable to pay certain debts such as student loans, fines and some debts arising from family proceedings
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Debt Solution Advisor® is a trading style of J3 Debt Solutions Ltd. Visit J3 Debt Solutions – www.j3debt.co.uk.

J3 Debt Solutions (FRN933715) is an appointed representative of MoneyPlus Group Limited which is authorised and regulated by the Financial Conduct Authority. MoneyPlus Group Limited (07310059) registered office: Riverside, New Bailey Street, Manchester, M3 5FS

To find other sources of free advice visit MoneyHelper. It’s here to listen and give free, impartial, trusted guidance. Based around you and backed by the government.

J3 Debt Solutions Limited is registered in Scotland, registered company address: Suite 144, 1 West Regent Street, Glasgow, g2 1rw, SCOTLAND company registration number SC612868, Information Commissioner’s Office registration number ZA474414. J3 Debt Solutions Limited is a firm of Licensed Insolvency Practitioners. Jamie Carmichael is authorised to act as an Insolvency Practitioner in the UK by the Institute of Chartered Accountants of Scotland. Our Professional Indemnity Insurer is CNA Insurance Company Limited, 13th Floor, 20 Fenchurch Street, London, EC3M 3BY and our Professional Indemnity Insurance policy number is 10321330. The territorial coverage is worldwide. The solutions on this page are only applicable if you reside in Scotland. We will only provide advice after completing or receiving an initial fact find where the individual(s) concerned meets the criteria for one of our insolvency solutions, therefore, all advice is given in reasonable contemplation of an insolvency solution

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