IVAs - Individual Voluntary Arrangements (Trust Deeds in Scotland)

What is an IVA or Individual Voluntary Arrangement?

An IVA or Individual Voluntary Arrangement is formal agreement between you and those you owe money to (i.e. your creditors) where you will arrange to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe. Then generally after 5 years your debt is classed as settled. Due to its formal nature, an Individual Voluntary Arrangement/IVA has to be set up by a licensed professional called an Insolvency Practioner. It suits people who have an unsecured debt greater than £15,000. If your debt is less than £15,000 then you should consider a debt management programme.

How does an IVA work?

You agree to make monthly payments based on what you can afford for a period of typically 5 years (i.e. 60 payments). Once the final payment is made any outstanding debt is legally written off - this type of arrangement can write-off up to 60-70% of your debts.We have a detailed IVA FAQ page giving in-depth answers to popular questions regarding IVAs.

What are the Benefits of an IVA?
	Debt Free in 5 Years - it lasts for a fixed period of time; it cannot drift on.
	Interest and Late Payment Charges Frozen - by law creditors cannot add further interest to the debt..
	Single Monthly Payment - based on what you can afford.
	Telephone Calls and Payment Demands Stopped - you cannot be hassled by your creditors
	Repaired Credit Rating (once IVA completed) - you will be allowed to borrow again.
	Fixed, Legally Binding Agreement
	Protection from Court Action - creditors are not allowed to take further legal action.
	A Private Agreement - unlike a bankruptcy there is no publicity in local papers.