Individual
Voluntary Arrangement Information
The increase in the nations personal debt has forced many people
who find themselves unable to meet their ongoing commitments and
consider all of the options available.
Individual Voluntary Arrangement or IVA is one such option and is
usually organised by a licensed intermediary regulated by the
Financial Services Authority who works on your behalf. The purpose
of the IVA is to simply renegotiate the level of debts owed to your
creditor based upon your ability to pay. Usually an agreement which
is legally binding lasts 5 years and will involve the Courts as
there are various formal procedures to follow. Most IVA practices
charge fees and these should be stated upfront.
It is worth remembering that every case of severe debt that
warrants some form of intervention is unique and therefore, the
remedies required may well be different. There are of course
advantages and disadvantages to entering into IVA's and these should
be explained in full by the Individual Voluntary Arrangement
Practitioner.
Always consider taking independent financial advice from
impartial organisations such as the Citizens Advice Bureau or the
National Debt Line. Before doing so, ensure you have all of the
information available such as the amount of capital owed, loan
repayment periods, monthly interest charged, creditor information
and monthly income and outgoings.
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