What is an IVA
An Individual Voluntary Agreement (IVA) is a formal, and legally binding, agreement that is drawn up between you and your creditors to help you settle your outstanding credit card debts.
Once agreement is reached with your creditors, you will often have to pay less than the outstanding debts, and with lower monthly payments.
Even though you may not have repaid all of the outstanding debts by the end of the IVA, you will be cleared of all liabilities for any debt balances remaining. This means that you will have wiped the slate clean.
Individual Voluntary Agreements have been designed to be an alternative to bankruptcy, which can be more expensive and have more serious consequences.
Creditors often prefer the IVA process because they will be receiving a proportion of money owed to them, whereas they receive nothing when someone declares themselves bankrupt.
Before considering an IVA as a solution for your debt problems, it is sensible to discuss your circumstances with an experienced insolvency practitioner. This is because IVAs are not suitable for all debt situations.©MoneyHighStreet.com