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.