Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors to manage your debts. It allows you to pay off a portion of what you owe over a set period, often five years, typically at a reduced amount. During this time, your creditors cannot take legal action to recover their debts. An IVA is legally binding, meaning all parties must adhere to its terms. At the end of the arrangement, any remaining debts covered by the IVA are usually written off. IVAs can help you regain control of your finances while avoiding bankruptcy.
Additional Insights
-
An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and their creditors to repay debts over a set period, usually five to six years. It allows people struggling with debt to make manageable monthly payments based on what they can afford, rather than facing bankruptcy. The IVA is legally binding, meaning all creditors must accept the terms if the majority agree. Once the agreement is complete, any remaining debt is typically written off. An IVA can help protect assets and manage debts more effectively, offering a path to financial recovery while avoiding severe repercussions.