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An IVA is a legal agreement to pay your unsecured creditors your disposable income usually over
the course of 60 months. Your disposable income needs to be £200 or more to propose an IVA. For
an IVA to be accepted 75% of the debt owed to creditors present in the creditors meeting must
be achieved. An IVA is suitable for debts above £16000. Three or more creditors are required.
Advantages
the course of 60 months. Your disposable income needs to be £200 or more to propose an IVA. For
an IVA to be accepted 75% of the debt owed to creditors present in the creditors meeting must
be achieved. An IVA is suitable for debts above £16000. Three or more creditors are required.
Advantages
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When the IVA is completed all debts are cleared, all responsibilities for them are taken away.
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Whilst in an IVA you will be protected from court action and harassment from your creditors.
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All interest and charges on your unsecured debts will be frozen.
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Your contributions are calculated on your ability to pay and should allow you to budget sensibly.
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An IVA is usually completed over 60 months but can be shortened in certain circumstances.
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IVA’s are not published in the local paper like Bankruptcy, but do appear on the insolvency register.
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Civil positions are not effected unlike Bankruptcy.
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Disadvantages
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An IVA usually lasts 5 years.
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If you fail to keep up your payments without good reason you could be made bankrupt.
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IVA’s affect your credit rating for 6 years.
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If you are a homeowner you will have to release available equity in the property.
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Windfalls like the Lottery and premium bonds will be used to pay off your money owed to creditors.
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Individual
Arrangement