Write off unaffordable debts

An Individual Voluntary Arrangement (IVA) is a formal debt solution that creates alegally binding agreement between you andthe people you owe money to. You may decide to enter an IVA if you’re struggling to repay the total amount of unsecured debt youcurrently have but can repay some.

Yes, an IVA will have an impact on your credit rating as it will show on your credit report for six years after it has been approved. However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.

Once your IVA is complete you will be offered a fresh start to begin rebuilding your credit rating.

In most cases entering an IVA won’t affect employment. However, in certain professions, such as accountants and solicitors, having an IVA may mean that you can no longer practice or you may only be able to practice under certain conditions.

Once you enter an IVA, creditors can take no further action against you and can’t contact you directly.

An IVA can be a positive way to manage unaffordable unsecured debt and allow you to better manage your monthly finances.

In an IVA a single monthly payment is agreed with your current financial situation taken into consideration – this payment is then divided between the people you owe money to. During the course of your plan all interest and fees associated with your debts are frozen.

At the end of the IVA the remaining debts are written off and you can begin your debt-free future.

When you’re considering entering an IVA, it’s important to be aware of the following:

• If you are a homeowner and your property has equity in it, you’ll need to try to re-mortgage which could result in an increased interest rate.
• Your credit rating will be affected.
• Only the unsecured debts included in your IVA will be written off at the end of the agreement.
• Your IVA will be recorded on a public register.

This isn’t an exhaustive list of considerations to be aware of before deciding to enter an IVA. An advisor will ensure you’re aware of the advantages and disadvantages to help you make an informed decision.

We offer free debt advice tailored to your circumstances. We’ll find out more about your current financial situation and your lifestyle to advise on the best solution for you. Although we offer advice on all debt help solutions available, we specialise in Individual Voluntary Arrangements (IVAs).

All of our initial advice is free; however, fees will apply should you decide to enter into an arrangement.

We operate a transparent fixed fee model, which incorporates the Nominee Fee, Supervisory Fee and all costs and expenses associated with the arrangement.

Fees will be taken from your monthly payment or asset realisations paid into your arrangement.

These will be discussed by an expert advisor to make sure you are fully aware of the costs involved.