What is Individual Voluntary Arrangement (IVA) & Their Benefits?

Individual Voluntary Arrangement

An IVA refers to the Individual Voluntary Arrangement. This is a formal settlement process which freezes charges & interest on your unsecured debts, enabling you to pay your lenders a reasonable amount over an agreed period. And upon the successful completion, the outstanding unsecured debt can be written off. The Individual Voluntary Arrangement can protect you from lenders commencing legal steps, like making an application for Bankruptcy or giving a petition to Court for defaulting on the monthly payments.

An IVA is one kind of a settlement process that can be conducted between you & your lenders to pay all or a certain part of your debts. You can make monthly payments to a reliable and trustworthy debt specialist named as an ‘insolvency practitioner’ (IP). They will distribute the money to the creditors as agreed in the IVA settlement process

Usually the unsecured debts should be at least 15,000 pound but it does depend on the individual creditors. There isn’t any minimum or maximum level of repayments plan, except what is adaptable to your lender. Your Individual Voluntary Arrangement generally ends when the agreed money has been paid back!!!

Benefits of an Individual Voluntary Arrangement include:

There are a number of benefits to an Individual Voluntary Arrangement. Here we have outlined all the information of these benefits so you can find whether an IVA advice could help you:

1. You only pay what you will be able to afford

Your daily living costs will always be before the payment to your Individual Voluntary Arrangement.

2. This protects your assets as well as property

Property and assets like your vehicle, house or are generally protected during an Individual Voluntary Arrangement, meaning that you will be able to all retain these after you paid off all your debt!

3. Lenders can’t harass you for monthly payment

When lenders have agreed to your Individual Voluntary Arrangement proposal, they’re legally bound by the settlement process & can no longer get in touch with you directly to ask for the monthly payment. But, you’ll have to work with your Insolvency Practitioner who will deal with the lender on your behalf.

4. A reliable as well as fixed payment

You’ll be able to make a flexible repayment to your debts. Creditors can’t add more interest or charge you extra fees to your debts when the Individual Voluntary Arrangement gets approved.

5. It writes off debt iva

The majority of the IVAs last from 5 to 6 years. And after completion, any outstanding unsecured debt will be automatically written off.

6. Charges & interest are frozen

When the IVA is agreed by the lender, the interest & the other relevant fees are frozen & can’t be added to the debts by the lenders. It aids to prevent the debt from enhancing further.

7. A legally binding plan

An Individual Voluntary Arrangement is legally binding, that means once agreed, both you & your lender should follow all the terms and conditions.

8. Protection from bailiffs and other legal action

As long as you can maintain the terms and conditions of your Individual Voluntary Arrangement, lenders aren’t allowed to take any kind of legal step against you. And it incorporates sending bailiffs in order to reclaim debt.

9. Decreased social stigma

Although the entire matter of debt shouldn’t be a taboo, this might be a settlement process that can be usually viewed better than some of the options, as in bankruptcy.

We are a non-profit organization that is continuously trying to deliver National Debtline help service without any type of assistance, judgments as well as restrictions. Not only we help single persons but, also people who have a family. We always believe in “Your success is our success” strategy. 

That’s all about Individual Voluntary Arrangement and its benefits. To know more about IVA Service, let us know in the comment section below.