What is an IVA?
If you have debts of over £12,000, then an IVA could be
right for you!
- Reduce your monthly repayments by up to
70%
- We handle negotiations with all
creditors
- Make one affordable payment each
month
Once you enter an an IVA your creditors have to freeze interest
and charges on all you owe - and they can't hassle you either
(generally, the phone calls stop well before your IVA is agreed).
At the end of your IVA all your remaining debt is written off.
Can I get an IVA? »
So - what is an IVA?
An Individual Voluntary Arrangement (IVA) is a
legally binding agreement between you and the people and
organisations you owe money to, other than your mortgage.
You can arrange an IVA when there is no real prospect of paying
off all your debts.
With the help of a licensed insolvency practitioner, you work
out what you can realistically afford to pay back over a period of
time - normally 5 years. If three-quarters of your creditors agree,
all your debts and all the future interest on them will be
frozen at the time that the IVA proposal is agreed.
At the end of the agreed period any debts you could not afford
to repay are written off provided you have kept up
with the negotiated monthly IVA payments. Typically, in a ClearDebt
IVA you will repay around half of what you owe - depending on your
circumstances up to 70% of your debt may be forgiven.
If you own a house that is worth more than the mortgage, then
you are likely to be asked to make a contribution from that towards
the end of the IVA. But you will not be asked to sell your home and
the additional mortgage cost will be deducted from the IVA payment
- so you never pay more than you can realistically afford.
As long as you are confident you can maintain your regular
monthly payment then an IVA could be the solution for you and you
could be debt free in 5 years or less.
Taking the two-minute ClearDebt Analyser
test now will give you a personalised initial assessment of whether
a ClearDebt IVA could be right for you!
Can I get an IVA? »
