Individual Voluntary Arrangement

Posted on | August 28, 2009 | No Comments

An Individual Voluntary Arrangement otherwise known as an IVA is a measure taken to prevent the dull and disheartening option of bankruptcy. An IVA can be for people that have mortgage repayment problems, debts with their credit cards or car credit repayments, store cards, personal loans, over drafts or just have low levels of capital cash. The reason that an IVA would be suitable in these instances is because it may well be the only option to help reduce these debts in a fixed and manageable manner. By setting up an IVA, you will also be free from any creditors contacting you in regards to your outstanding balances. Normally, to qualify for an IVA, your debts will be above 13-15 thousand pounds (depending on the company you enter into an IVA with). A certain, set amount of money then needs to be guaranteed to this on an ongoing monthly basis. It needs to be noted though that certain types of debts cannot be included in an IVA. For example secured loans, car finance debts, council tax arrears and parking fines cannot be settled using an IVA. These need to be separately.

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