An IVA (Individual Voluntary Arrangement) is drawn up by an Insolvency Practitioner. It is an agreement to pay a set amount each month and usually lasts for 5 years. The interest on the debt is frozen and if the debtor keeps to the agreement, the debt will be cleared after 5 years. 75% of the creditors must approve before IVA can be set up.
Although you will have to change your Lifestyle during an IVA. Don’t think that just because you are in the midst of an IVA doesn’t mean you have to miss out on a yearly holiday.
If you have an IVA and your financial situation changes, the first thing you should do is notify your Insolvency Practitioner (IP). It’s really important that you keep talking to your IP – even if you feel embarrassed or shy or a bit intimidated by them. Remember, THEY are working for YOU! To help make Creditor Phone Calls Stop!
What you need to know
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Advice on remaining debt free
