An
IVA, or an Individual Voluntary Arrangement, is a UK debt solution for people who owe at least £15,000.
What is an IVA?
An IVA was introduced in 1986 in the UK as a government solution for people in serious debt. It is a legally binding agreement between the debtor and their creditors which allows you to pay off your debt in 5 years. The monthly payments are agreed on the basis of your employment and expenditure so that you could afford them. Very often the amount you pay off is lower than the overall debt.
If you are considering bankruptcy, you should look into an IVA as it is a less severe solution. Once you are declared bankrupt, all of your assets might be taken over to pay off your debtors. It includes your house, car (unless you can prove that it is essential for employment), bank account funds, jewellery and other valuables. An IVA usually lets you keep the house and lets you keep it a secret from everyone else, whereas your bankruptcy will be advertised in your local newspaper.
IVA Advice
Debt problems are a serious matter, so you should seek debt advice from experts in the field. A short summary of available advice on IVAs and other debt solutions is available from here:
Debt Advice in the UK
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