IVA in the UK could free you from debt
Taking out an IVA in the UK is one way of being debt free within a specific amount of time but you do have to ensure that you would be able to stick with the agreement otherwise you could be made bankrupt. An IVA - which is short for individual voluntary arrangement - means that you are signing a legal document to make special arrangements to pay some or all of your non-essential debts that you owe. Debts that are classed as non-essential include credit card debt, store cards or loan debt. Those which are considered to be essential, such as mortgage arrears, will have to be dealt with individually by other means.
The whole process of making a UK IVA involves you working out how much you could comfortably afford to pay each month and then sticking with the repayments over the specified amount of time until the debt is either paid off in full or the remainder is written off. The whole agreement is carefully watched over by an insolvency practitioner. It can be a very costly way of freeing yourself from debt, so it has to be given some very serious thought.
Before the agreement can commence your creditors have to concur to the arrangement. If you have several creditors then 75% of them have to agree to the single payment and providing at least 75% do, then the IVA will go ahead regardless of the others voting against it.
IVA in the UK is just one of the many ways that you can manage your existing debts and as with all debt management it has to be given some very serious consideration before signing and agreeing to pay off your creditors this way. Always make sure you read the small print of any legal document before signing and make sure you understand what you are agreeing to. If in debt then get help and advice on Individual Voluntary Arrangements through a specialist website.
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