What is an Individual Voluntary Arrangement (IVA)?

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This is a guest article from Stacey Cavanagh

iva-5410004With any global recession at corporate level, follows financial difficulty for families and individuals. And while it is, by no means, as young as the most recent economic downturn, the IVA is something about which you may have heard more in the last twelve months than you had done previously.

But just what is it all about? Essentially, IVA stands for Individual Voluntary Arrangement and it enables you to reach an agreement with creditors to which you owe money. A piece of government legislation, an IVA is a real and legal alternative to bankruptcy for those who have found themselves in debt exceeding £15000, who are in regular employment and who are experiencing extreme difficulty in meeting their repayments. This type of agreement can assist with a number of debts including, but not limited to, credit card debt, rent arrears and outstanding store card balances.Essentially, the way it works is that a licensed IVA provider will negotiate your monthly payments with your creditors on your behalf, ensuring that you are left with sufficient money to meet your other expenses and enjoy a reasonable standard of living. In order for them to do this, you will have to supply the provider with information ascertaining to your total household income, your assets (including your house and car etc) and also complete information about your debts. This will include creditors, references and outstanding balances. This will allow for the IVA provider to negotiate your payment with your creditors and come to an arrangement whereby you make one simple and manageable payment each month.If you meet the minimum requirements for an IVA and are in a situation whereby you are finding your monthly payments increasingly difficult, then it might be in your best interested to seek IVA advice and ascertain whether this could be solution for you.

This is a guest article written by Stacey Cavanagh

Picture: jordigraells

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