Individual Voluntary Arrangement (IVA)
What is an IVA?
An individual voluntary arrangement is a legally binding, formal agreement between yourself and your lender to pay off your debts over a period of time. As it is legally binding, it is approved by the court and you must stick to it, and so must your creditors.
An IVA must be set up by an insolvency practitioner, for example a lawyer or an accountant, who needs to be fully qualified. Said person will charge for the set up of the IVA; fees that can be high, corresponding with the amount you are paying back through the IVA – bear this is mind. The insolvency practitioner will be the person who deals with your creditor, throughout the term of the IVA.
Debt Management companies:
If you decide to go through a debt management company, the fees will most likely be higher so make sure you are well aware and have looked around for the best route for you before you go ahead with anything.