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.