Individual Voluntary Arrangement (IVA)
An IVA is an agreement between you and your creditors where you formally agree with your creditors to make payments towards your total debt.
Due to its formal nature an IVA has to be set up by an insolvency practitioner. The agreement is legally binding between you and all your creditors and normally runs for 1, 3 or 5 years.
Monthly payments are based on an affordable disposable income and subject to your circumstances the arrangement can write off a percentage of your debts. Once set up, all interest and other debt charges are frozen and creditors are prohibited from taking any further action against you.
Act now and get professional IVA advice for free from 4Squared.