What is an IVA? No comments yet

Today, we find ourselves in an ever deteriorating economic climate. This means that many more people are struggling to meet payments and in turn have large amounts of debt to contend with. Luckily, there are means in which these problems can be eased.

One method is an Individual Voluntary Arrangement (IVA). An IVA is a legally binding contract between you and your creditors which aims to reduce the amount of money you have to repay. You will find that it is a good way to stop any further interest charges and to reduce your monthly payments. Consequently, you will have more money in your pocket at the end of the month in which to spend on other things.

Although IVA’s are an excellent solution for some, they are not always the best for everybody. Therefore, there are criteria which you must meet to be eligible:

•    The debt is over £15,000.
•    The debt is owed to three or more different creditors.
•    You have figured out a sensible, realistic budget that you will be able to stick to in order to make my payments, allowing enough to pay for everyday basic needs, bills and general living costs.
•    You are in regular employment with a steady income.

If you do not meet the above criteria then it is likely that an IVA is not the ideal solution for your debt problems. Even for people who do meet the above criteria, it is always advisable that you arrange a meeting with a debt advisor first as they will be able to inform you more about an IVA and any other available options. So there you have it, ‘what is an IVA’ in a nutshell.