IVA Debt Management

Independent debt help from one of the UK's leading debt consolidation advisors. We are here to provide free impartial assistance to help you to overcome your debt problems.

Debt Management Help.org.uk is part of a group of Licensed Insolvency Practitioners who are authorised to provide Individual Voluntary Arrangements.

To set up an IVA you must use an Insolvency Practitioner such as ourselves. If you think that an IVA could be a solution to your debt problems then speak to one of our advisors by calling freephone 0800 043 50 43 or by completing our enquiry form.

Individual Voluntary Arrangements (IVA)

If you owe more than £15,000 and are struggling to keep up with your debt repayments then an IVA debt management plan could be the best solution.

What is an IVA?

An IVA or Individual Voluntary Arrangement is a legally binding agreement between you and your creditors. Under the terms of the IVA your debts are consolidated down into one single monthly payment to be paid for a fixed period of time. At the end of the IVA all the remaining debt is written off by the creditors, leaving you free of debt.

Qualifying for an IVA

To qualify for an IVA it is usually expected that you will have debts in excess of £15000 that you are unable to repay through the release of any material assets you may have. These debts should be divided between at least three separate creditors. Additionally you must be in regular employment and be able to make repayments high enough to satisfy your creditors. For the IVA to progress you must have the agreement of at least 75% of your creditors.

How long will the IVA last?

Generally the IVA repayments will be made for a period of up to sixty months (five years), although legally the maximum length of an IVA is seven years. There is however a large amount of flexibility and so the length of an IVA can vary significantly from case to case.

Benefits of IVA's

  • your monthly debt repayments can be reduced by up to two thirds
  • all further interest and charges relating to your debts will be stopped
  • unlike bankruptcy, an IVA is a private agreement only between you and your creditors and so no formal newspaper notification will be made
  • any legal action including bankruptcy proceedings will stopped once the IVA is approved

Disadvantages of IVA's

Individual Voluntary Arrangements do have some disadvantages which should be considered before entering into any agreement. These disadvantages include –

  • monthly IVA repayments can be increased but are less likely to be reduced
  • if you cant keep up the repayments then the IVA may be 'failed' often resulting in bankruptcy
  • at least 75 per cent of your creditors must agree to the IVA for it to go ahead
  • in circumstances where you have no assets or significant income then filing for bankruptcy is likely to be a better solution to your debt problems