What is an IVA?

An Individual Voluntary Arrangement("IVA") is a legally binding agreement between you and all the people and organisations you owe money to (your creditors).

You can try to 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 - often 3-5 years. If three-quarters of your creditors agree, all your debts and the future interest on them will be frozen at the time that the IVA proposal is agreed. Your creditors will usually forego some of the debt you owe and at the end of the agreed period these debts are written off provided you have kept up with the negotiated monthly IVA payments. As long as you are confident you can maintain the regular monthly payment that is agreed 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!