Personal Finance > Debt Help > What is an IVA

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 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.

Money High Street is pleased to have partnered with Re10 licenced insolvency practitioners who can advise you about the best way of resolving your debt issues.

Should you wish to receive impartial advice then please complete the form on this page and one of our experienced debt relief partners will contact you, depending on the severity of your problems.

If you require help with your debt problems, please click on the red banner on the right hand side of this page. Our debt management partner will be able to assist you.