- If you're under pressure from debt collectors and creditors, and they are demanding or threatening to take legal action.
- If you're struggling to make minimum payments with either a personal loan debt, credit card debt, bank overdrafts, store cards or catalogues.
- If your debt is £12,000 or more and becoming unmanageable.
- If the worry of your debt is beginning to affect the rest of your life.
An IVA (Individual Voluntary Arrangement) is a legally binding agreement that protects you against any future action from creditors. This is done by having your interest frozen and, possibly, a significant amount of the debt written off. It can be an attractive alternative when choosing how you want to clear your debt problems.
An IVA is arranged between you and the people you owe money to, and it takes place over a fixed period, usually five years. IVAs are becoming increasingly popular in Britain amongst those who are struggling to keep up with their repayments. They offer a very useful and real alternative to bankruptcy, especially among creditors as they generally stand to recoup more of their money with an IVA than they would from bankruptcy.
Typically, an IVA agreement will see a creditor agree to write off a proportion of the debt owed to them. In return you agree to pay a fixed proportion of your monthly income towards the debt for a period of five years.*
* fixed repayment period (typically 60 months)