If you have debt of over £10,000, then an Individual Voluntary Arrangement widely known as an IVA could be right for you!
An Individual Voluntary Arrangement
(IVA) is a legally
binding agreement between you and the people and organisations you
owe money to (creditors), other than your mortgage.
An IVA is often a solution people consider when they feel there is no real prospect of paying off all of their debt. It's worth noting that there can be negative consequences to IVAs and you can read more about these on our IVA FAQ page.
With the help of a licensed insolvency practitioner (IP), we
help you work out the amount you can realistically afford to pay
back over an agreed period of time - normally 5 years. If
three-quarters of your creditors agree, your debt and all the
future interest will be frozen at the time that the IVA proposal is
At the end of the agreed period any debt you could not afford to repay is 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 -
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.
Once you enter an IVA your creditors have to freeze interest and charges on your debt - and they can't hassle you either (generally, the phone calls will stop well around two months into your IVA and any further correspondence you receive from your creditors should be forwarded to us to deal with). At the end of your IVA all your remaining debt is written off.
Complete our online contact form and one of our of trained debt advisors will call you back to discuss your finances and to help you decide whether a ClearDebt IVA could be right decision.
Tens of thousands of people in England & Wales have relied on ClearDebt since 2005. ClearDebt is not an intermediary or a middleman, we do not trade your personal details.
ClearDebt holds a Consumer Credit License No.565479. We never pass your data to any third party.
The insolvency service have put together a debt guide which you can download now as a pdf document here: In Debt? Dealing with your Creditors