IVA Debt UK

An IVA will involve one affordable repayment each month, over a period of 60 months. Your monthly repayment is based on how much you can afford each month after your normal cost of living has been deducted from your income. Plus all your liabilities & assets have been taken into account, which reduces the risk of IVA Debt UK repayments pushing you into arrears and forcing you to miss payments on your mortgage or rent, car finance, utility bills or council tax. In certain situations the debts can be paid by using a, one-off payment known as a ‘Full and Final Settlement' or ‘Lump Sum' Individual Voluntary Arrangement (IVA).

An IVA has to be drafted by an Insolvency Practitioner (IP), which has to be approved by you. A copy of this proposal is then sent to all your creditors, and a creditors meeting arranged is arranged with the IP. Don't worry! You wont have to attend this meeting. In fact from now on your IP should look after all correspondonce with your creditors.

The IP will head the creditors meeting, in which creditors vote on whether they will accept or reject the IVA Debt UK proposal. Or they may even choose to accept it, but with modifications. If some creditors cant make the meeting they can still vote on the IVA proposal by voting will by fax or by post. For the proposal to be accepted more than 75%, in debt value terms, of the creditors debt choose to accept the proposal, the IVA is agreed and becomes legally binding for all parties. So if there are a few creditors who only have 5% of the total debt for example, they will have to accept the IVA whether they like it or not.

After the IVA duration of 5 years you will be considered totally debt free. This will be the case even if you have not repaid all of the debts in full. Any outstanding balances will be written off leaving you totally and legally debt free.

So if you have debts over £15,000 and you cannot afford to make all your current debt payments then an IVA Debt UK proposal may well be the best and only option you can take.