 gives the help needed to get on top of their debts and money. 1 An IVA is one way for people to get on top of debt Credit: Getty But an IVA should not be entered lightly. It is not suited to everyone in debt and you should do plenty of research before going ahead. There are lots of free debt resources that can help give advice if you are battling with money. What is an IVA? An individual voluntary arrangement (IVA) is a formal agreement between you and those you owe money to, known as your creditors. The arrangement sets out how you will pay back debts over a set period of time. It's approved by the courts. When an IVA is in place creditors should stop charging interest on debts, and chasing you to pay back money owed. This can be a welcome relief for people who are feeling overwhelmed by their situation. To uphold your side of the agreement you will usually need to make the payments set out and not take out any new credit without permission through the agreement. An IVA will be set up by a qualified person known as an insolvency practitioner who charges fees. You will also usually have to tell your IVA provider if income increases or if you get any other cash coming in. Debts you can have in your IVA include gas and electricity arrears, council tax arrears, water arrears, payday loans, store cards, personal loans, credit cards, overdrafts, benefit overpayments, income tax and other outstanding bills. You can't include student loans, child support arrears, TV licence arrears and magistrates court fines in an IVA. How much are the IVA monthly payments? Monthly payments will depend on your individual circumstances but the important thing is they are manageable. You could also agree to make lump sum payments or a combina){kind=link}
GETTING on top of overwhelming debt can be a huge struggle, especially with a cost of living crisis looming in the background.
Some people could find entering an individual voluntary agreement (IVA) gives the help needed to get on top of their debts and money.
But an IVA should not be entered lightly. It is not suited to everyone in debt and you should do plenty of research before going ahead.
There are lots of free debt resources that can help give advice if you are battling with money.
An individual voluntary arrangement (IVA) is a formal agreement between you and those you owe money to, known as your creditors.