If you’re struggling to pay off debts, you may want to consider making an Individual Voluntary Arrangement, or an IVA. An IVA gives you more control of your assets than bankruptcy, and allows you to arrange to pay off multiple debts in amounts that you can afford. There are multiple benefits to IVAs: unaffordable debts may be written off, interest rates and charges are frozen, and arranged payments should be low and easily affordable.
Which debts can be included in an IVA?
Not all debts can be included in an IVA. Student loans, mortgage arrears, child maintenance and support payments, car finance, and secured loans cannot be included in an IVA. However, the IVA can cover a wide variety of debts, including:
– Credit cards
– Personal loans
– Debt collectors
– Old utility bills
– HMRC debt
– Previous years’ council tax
Is an IVA for me?
If your debts include some of the types listed above and you can afford to pay off some of your debts but not all, you may want to consider an IVA. Most people who set up IVAs are paying back debts of £10,000 or more, although this isn’t always the case. An IVA may be suitable whether you want to pay back your debts in monthly increments or even as a lump sum payment.
How do I secure an IVA?
National Debt Help can assist you in setting up an IVA. We will work with you to figure out how much you can repay and how long the IVA will last for. Before an IVA can be set up, your creditors will have to be contacted and creditors holding at least 75% of your debts must agree to the IVA. Once the IVA is arranged, it will include all of your debts, including those held by creditors who did not agree to the IVA.
To set up an IVA, you will need to disclose information about your own finances, including all debts that you hold, your income, your assets, and your creditors.
Paying off your IVA
An IVA should only be made for payments that you can afford. If you do not meet your IVA payments, you may be made bankrupt. When you make your final payment to an IVA, any remaining debt is written off and you will be debt-free.
For expert advice and help on managing your debts, please contact us on 0800 002 9051. You can also use our debt calculator to find out what kind of help you might qualify for.
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