An
Individual Voluntary Arrangement (
IVA ) is an agreement with your creditors
to make a single reduced payment each
month. This lasts for an agreed period
of time (less than 5 years). Once
agreed, creditors are not allowed
to add interest or charges to your
accounts by law. The agreement is
fixed meaning that creditors cannot
randomly demand changes to it.
Whether
your debts relate to amounts due on
loans, credit cards, trading debts such
as Self Assessment or Tax, amounts due
to suppliers as well as council tax
and utilities, an IVA will bind all
these creditors to your one monthly
payment arrangement.
Outside
of an IVA, creditors can obtain judgments
and then onto obtaining charging orders
against your property. They can also
petition for your bankruptcy which will
mean that your property is at risk.
An Interim order application can stop
these actions in the period prior to
the creditors' meeting. Once your IVA
has been approved, creditors cannot
take any further action against you.
Don't
be fooled by companies that say they
can write off upto 95% of your debt.
This is not true. Maximum write off
is 75%
