If you are struggling with unmanageable debts that you don’t think you’ll ever be able to repay, but you can commit to making monthly payments at a reduced rate… an IVA (Individual Voluntary Arrangement) may be suitable for you.
An IVA, to put it simply, is a formal agreement between you and your unsecured creditors in which you’ll be required to pay as much as you can afford (per month) towards your debts.
Because an IVA is a formal agreement, once one has begun, you can’t change the terms of the agreement (without your lenders agreeing to it) – and nor can your lenders.
In most cases, an IVA will last for five years (60 months), but this may vary depending on the terms of your particular agreement and your ability to make payments towards your IVA throughout its duration. Once your IVA comes to a successful close (i.e. once you have made your final scheduled payment), your creditors will write off the debt you couldn’t afford to repay and you’ll be legally debt free.
Of course, as with any debt solution, there are several things you need to consider before entering an IVA. F Read more…