National Consumer Debt Help Service
Consumer Debt Help about Debt Management and IVA’s! - Want to know if you can clear your personal debt problems with an IVA or Debt Management Plan?
What is an IVA and how does it work?
Most television channels now carry adverts for companies who offer a consumer IVA as a solution or service to clear a consumers personal debt problem.
Not all of these adverts explain what the IVA is particularly well. We are aware of people who think it is a magic wand to make debt disappear.
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It’s not!, So what is an IVA?
An IVA or Individual Voluntary Arrangement is a formal agreement over a fixed term, usually 60 months, between you and your creditors and is available in England, Wales and Northern Ireland. In Scotland things are slightly different and an IVA there is known as a Trust Deed.
An IVA is available to those in serious debt and should not be entered into lightly as it is a legally binding contract between you and your creditors and is supervised by an Insolvency Practitioner. A Debt Management Plan is informal and not legally binding.
- Failure to meet your IVA repayments can result in bankruptcy
There are several immediate benefits from entering into an IVA
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All further interest and charges on your debts will be stopped!
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You only make ONE monthly payment to cover all your unsecured debts!
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Your correspondence with creditors stops – no more phone calls or letters!
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Once you have made your final payment, all remaining debt is written off!
An IVA can be a discrete way to solve debt problems and although you cannot enter into new credit agreements during the term of an IVA, once you have made your last payment, you are then legally free from your debts and can legally borrow again. It may take time to rebuild your credit rating.
If you would like further information about an IVA or Trust Deed, or for further consumer debt help call our FREE debt helpline on 0800 018 6868.
Published by Lewis Alexander Financial Management intended as a personal information guide only, website marketing by internet advertising consultants