An IVA (Individual Voluntary Arrangement) is a debt solution that allows you to pay back a portion of your debt through a legally binding agreement between you and your creditors.
If you meet the criteria and an IVA is suitable for you, it’s vital to know how you get one and what is involved in the process.
If you’re considering an IVA as a possible debt solution, it’s important to seek advice from a trained adviser, such as ours at M1 Debt Solutions, to determine whether or not it would be suitable for you.
There are great benefits in entering into and IVA, as well as a few risks that you need to be aware of before deciding on whether you enter into one.
In this short guide I’ll explain how to get an IVA, the fees involved and who can manage one for you.
How do I get an IVA?
When you enter into an IVA you make 60 or 72 affordable payments towards your total debt level, or you offer a lump sum payment.
For your IVA to be approved at least 75% of your creditors must to agree to your proposal by way of a vote.
Once you have had your IVA accepted by your creditors you’re protected against any legal action to recover any of the debts included.
You will be asked to complete an annual review of your finances, with both yourself and your creditors receiving a progress report.
When you complete your IVA you will be notified from your IVA company.
How do I apply for an IVA?
Before you make the decision to apply for an IVA it’s vital you speak with a trained adviser first to make sure it is definitely the correct debt solution for you.
They will give you impartial advice to help you decide which is the best route for you to take.
The most important thing is to act quickly to prevent your debts spiraling out of control.