What is an IVA?
An individual voluntary agreement (IVA) is an agreement involving you and your creditors to help you pay off your debts at an reasonably priced.
IVAs are no presented if you live in Scotland. In Scotland, you would require a protected Believe deed is a related solution, but it’s important to note that it has dissimilar profit, risk and charge associated with it.
What is 'Debt'
Debt is an amount of money borrowed by one party from one more. Debt is used by a lot of corporation and individuals as a scheme of creation big purchase that they could not afford under common circumstances.
A debt arrangement gives the borrowing party permission to borrow money under the situation that it is to be paid back at a later date, generally with interest.
Debts included and excluded in an individual voluntary agreement An individual voluntary agreement is a lawfully required agreement between you and your creditors to help you pay off your debt. Most of your debts will be included in an individual voluntary agreement and when the contract ends, any remaining balance should be written off.
There’s no maximum value to the amount of debt included in an individual voluntary agreement, however chances debts cannot be included.
Is an individual voluntary agreement right for you?
What debts does an IVA include?
When you enter into an IVA most of your debts are going to be involved:
• Personal loans
• Credit cards
• Gas and electrical arrears
• Council tax arrears
• Water arrears
• Payday loans
• Store cards
• Income tax and Social insurance arrears
• Tax credit or profit overpayments
• Debts to family and friends
• Any Alternative outstanding bill, for ex - solicitor’s Prices, invoices for building work and veterinary bills
Debts which are not involved in individual voluntary agreement?
• Mortgages and secured loans
• Hire purchase agreements
• Court fines
• TV Licence arrears
• Student loans
• Child support arrears
• Social fund loans
Can joint debts be involved in my individual voluntary agreement?
A joint debt can be involved in an IVA however the other person name on the debt will still be responsible for creation payments towards it.
If you have some of the debt written off, the other person can still be asked to pay the remaining money back.
If you have joint debts, and are thinking about entering into an individual voluntary agreement, you must contact our helpline for advice 1st. We can let you know how it’ll affect you and the other human being named on the debts.
What happens to my debt during an individual voluntary agreement?
Before an individual voluntary agreement is decided, a proposal will be put to your creditors.
If they agree to the individual voluntary agreement you’ll create monthly costs towards the IVA for Sixteen or Seventy two months, unless you have a lump sum IVA.
If you have a lump sum IVA, you will make a one-off larger payment into it.
When your IVA has ended, you’ll be issued with a official document of completion. At this point any balance excellent on the debts involved in your IVA will be written off.
Is an individual voluntary agreement right for me?
To find out if an involved voluntary conformity is correct for you use our online debt help tool. It will advise a debt solution based on your own circumstance.