Individual voluntary arrangement? (IVA)
An IVA is a legally binding arrangement drawn up between you and your creditors to repay your debts at an affordable rate
Bee Wise Solutions specialises in administering Individual Voluntary Arrangement (IVA) and we will charge fees for this service, you can find out more about the fees charged here. Should we recommend an alternative solution (e.g Debt Relief Order, Debt Management Plan) then we will refer you to one of our trusted third parties and may receive a fee for this. An IVA is not suitable in all circumstances. Entering a debt solution may impact your credit file.
To find out more about managing your money and getting free and impartial debt advice, visit www.moneyhelper.org.uk, an independent service set up to help people manage their money.
Individual Voluntary Arrangement (IVA)
An individual voluntary arrangement or an IVA as it is commonly referred to is a where a legally binding agreement is drawn up between you and your creditors to allow you to repay your debts at an affordable rate. At least 75% of creditors (by debt value) must accept the proposal for it to be approved.
An IVA typically lasts for 5 or 6 years, with any remaining debt at the end of this period being written off.
Benefits:
- Your assets are protected such as your home or vehicle
- You make one affordable monthly payment
- Once approved the creditors included can no longer pursue the debts.
- Interest and Charges are frozen once the arrangement is in place.
Considerations:
- There are fees payable for the work involved in setting up and managing your IVA, however, these are included within your monthly payments.
- You will need to conduct an annual review of your finances
- Your credit rating will be affected as an IVA is recorded on there for 6 years.
- Your details are recorded on the insolvency register.
- If your IVA were to fail, you could be made bankrupt
- If you’re a homeowner, your arrangement may be extended by 12 months if your share of any equity is more than £10,000.