An IVA is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986.   It enables an individual in debt to make a proposal to the people they owe money to (creditors) to reach a settlement.

With an IVA you'll reach an agreement with your creditors to make a single reduced payment each month.   This lasts for an agreed period of time (up to 5 years).   Once agreed no further interest or charges will accrue to your accounts by law.   The agreement is fixed meaning that creditors cannot randomly demand changes to it.

Following the agreed period the remainder of your debt is written off.   You must have a minimum debt of £15,000 to apply.   Consider Debt Management if your total debt is less than this.

IVAs are becoming an increasingly popular choice for people with debt problems in the UK.   FA Simms has a department which specialises in advising, setting up and supervising IVAs.

Why Might An IVA Suite Me?

An IVA is suitable when someone is unable to pay off their debts but does not want to file for bankruptcy.   It can be an attractive option to all parties including the creditors as often it presents for them a better result than under bankruptcy.

It is crucial that contributions to an IVA are based on what you can afford, not what creditors are asking for.   That way you pay what you can realistically afford without the pressure of spiralling payments.

Benefits of Individual Voluntary Arrangements