IVA (Individual Voluntary Arrangement) legislation was introduced by the Government as a less severe alternative to bankruptcy. No other debt solution can write off any amount of your debt.
You make a set monthly payment over 60 months, and then any unaffordable debt is written off at the end of this term. All interest and charges are frozen by your creditors, meaning that your debt will not increase. All legal action against you is stopped, including any bankruptcy proceedings.
It is suitable for those with unsecured debt over £15,000 who are struggling to make minimum payments. You will need to commit to making a realistic monthly payment back to your debts, so it is important that you are in regular employment.
For more information about IVAs, please call Debt Helpline on our freephone number, 0800 0481 778.