Iva Guide

If you are getting desperate or in need of a several financial overhaul, there are many ways to go about it. Some remove the problem immediately but restrict you a lot more, some take a lot of time and patience and some will even leave you worse off due to crippling interest rates.

When things really come to crunch time you may feel like you have no way out, but thankfully there are more products available than ever to combat debt, and if you do your homework you could fine the perfect solution to your problems.


One such example of how to save yourself from a financial spiral is to look into an IVA.

An IVA, or, Individual Voluntary Arrangement, is an official and formal decision made between you and the county court that states you will pay off debts over a determined time scale, which is usually within the range of about three to five years. The payments you will make per month are usually lower than usual at around 250 to 300.

If you want to set up an IVA you would need to book an appointment to discuss it with an Insolvency Practitioner. The Insolvency Practitioner will gather up all of your financial information and will propose a solution to the creditors that you currently owe money to.

The creditors will then vote whether or not they accept the proposal. If the creditors that agree to the offer are owed 75% or more of the debt, the remaining 25% are therefore bound by that decision.

Deciding to take out an Individual Voluntary Agreement can often be a better financial decision than bankruptcy. When you decide to file for Bankruptcy, all of the effected possessions are held by the trustee, and this includes your insurances and savings, which are shared between creditors.

With an IVA the Insolvency Practitioner will negotiate which assets are part of the agreement, with a valued example being your home. If you decide on bankruptcy you will face many more hard edged restrictions, limiting you in ways to built yourself back up again.

By: Jennifer Quirk

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If you are starting to struggle with Debt, an IVA could be the best option for you. Usually kinder than bankruptcy, be sure to find out what Individual Voluntary Agreements are available online.