IVA Articles
Articles and Information on everything related to IVAs
IVA : How Does An Individual Voluntary Arrangement Work ?
Although the subject of Individual Voluntary Arrangements (IVAs) can be quite complex, in principal the actual Individual Voluntary Arrangement concept is based on a very simple idea, and it works like this...
An Individual Voluntary Arrangement (IVA) allows somebody that is in serious debt, and unable to afford their monthly payments, to come to a new arrangement with their creditors. An Individual Voluntary Arrangement will normally consist of 60 monthly payments to the creditors. The size of these payments is calculated on what the debtor can actually afford, after all their general living costs have been taken into account, and will overwrite the original agreed payments.
An Individual Voluntary Arrangement is arranged through an Insolvency Practitioner who prepares all the paperwork and liaises with the creditors on behalf of the debtor. The insolvency Practitioner that represents the debtor at the beginning of the Individual Voluntary Arrangement will normally act as the IVA Supervisor for the full term of the Individual Voluntary Arrangement.
After the last payment is made into the Individual Voluntary Arrangement, the debtor is debt free, even if the original debt is not fully repaid. During an Individual Voluntary Arrangement, creditors cannot contact the debtor, and they cannot charge any interest on the outstanding debts.
For more information about Individual Voluntary Arrangements you can download your free guide "The Truth About IVAs" from here or call 0800 088 7503 to discuss your circumstances with an experienced Individual Voluntary Arrangement adviser.
