An Individual Voluntary Arrangement (IVA) is a legally binding agreement that assists someone with an overwhelming debt problem to become debt free.
In the main, an Individual Voluntary Arrangements (IVAs) repayments last for 5 years, and are set at an affordable monthly repayment level that allows the debtor to continue with their daily lives without any loan repayments and the financial burden that loan repayments bring, and therefore by removing the cost of loan repayments from their budget, halting the chances of a loan repayment making their situation worse.
An Individual Voluntary Arrangement (IVA) is a formal agreement, and once an Individual Voluntary Arrangement (IVA) has been agreed at the creditors meeting, both parties, i.e. the debtor and the creditors, are bound by its terms.
One of the fundamental conditions that a debtor must agree to when entering into an Individual Voluntary Arrangement (IVA) is that they MUST NOT APPLY for a loan or seek any further credit whilst the Individual Voluntary Arrangement (IVA) is ongoing.
This condition is always required and is designed to protect the creditors from a debtor that is already in an Individual Voluntary Arrangement (IVA) from becoming further in debt and burdened with loan repayments.
Take this link for further information on Individual Voluntary Arrangements (IVAs) and the Loan option.
For further information on Individual Voluntary Arrangements (IVAs), and the conditions that apply to them call My IVA Adviser on 0800 088 7503 where one of our experienced Individual Voluntary Arrangement (IVA) advisers will be waiting to answer your questions.