An IVA is an alternative to bankruptcy and can help you clear your debt without losing all your possessions.
An IVA is a contract between you and your creditors that agrees on an affordable monthly payment plan/ or a one-off payment to clear your debt.
Once creditors have agreed on a payment plan, they cannot change your repayment rates.
You won’t be charged any additional interest on your debt.
An IVA has an adverse impact on your credit rating.
You need to owe at least £10.000 to qualify for an IVA, but there is no upper limit.
IVAs only cover unsecured debts, so you won’t be able to clear debt caused by a mortgage and other loans secured on your property as well as rent, council tax arrears, magistrate’s court fines, speeding or parking tickets, maintenance or Child Support Agency arrears.
Non-essential assets such as ISAs or saving plans may have to be put towards your repayment.
IVAs are available for people living in England, Wales and Northern Ireland. In Scotland the IVA is called Scottish Protected Trust Deed.
IVAs are made public on the Insolvency Service website, which means that family and friends could find out about your debt.