What is an IVA?

This is a legal arrangement agreed between the
debtor and his creditors to repay part of the debts
over a specified period of time. IVA’s are kept on
record for six years from the date of the IVA.

Who can apply for an IVA?

Only the debtor can apply for an IVA. A court will decide whether an IVA will be more appropriate than bankruptcy, based on the individual’s circumstances.

What are the consequences of an IVA?

  • As the creditors are being offered regular payments, they are likely to be more flexible. Your assets and home may not be at risk to the same extent as in bankruptcy.
  • Interest on outstanding loans can be frozen.
  • During the course of the IVA, you will probably not be able to obtain any credit. Certain loans such as mortgages may be available, but at a greater rate of interest.

Further information
The Debt Advice Bureau is an organisation advising about debt management, bankruptcy and IVA.

www.debtadvicebureau.org.uk