An Individual Voluntary
Agreement is another term for an Individual Voluntary Arrangement.
An Individual Voluntary
Agreement (or Individual Voluntary Arrangement) is a form of debt relief
plan set up by H M Government to try to eliminate personal debt and
to deal with the growing issue of personal insolvency.
The needs of one
household can vary greatly from the needs of another person or household.
Any advice given must thus take into account the diverse nature of the
situation people find themselves in.
Generally an IVA
will run for 60 months (sometimes less) and after the term has completed
all the debts are discharged from a person's credit record.
An instrument such
as an Individual Voluntary Agreement writes off most of your debt at
the beginning of the programme (although beware of the claims made in
some advertising: it is seldom more than 60 or 65% of unsecured debt
which may be cancelled in this way). Any decent IVA advice of this nature
will ensure you get optimum results with the lowest monthly
repayments together with the greatest percentage of debt written
So fill in the application
form for impartial IVA advice which is right for your own personal situation.
If you have at least
two accounts in debt, and total debts of £2,000 or more, use the
form below to see if you qualify. (If you owe less than this, or are
on state benefits, then use this
link to apply.)
be aware that figures entered need to be accurate by law, and to give
the best service to you. It is extremely important that you budget for
all necessary expenditure including rent or mortgage, council tax and
utility bills, etc., and any other necessary outgoings related to the
upkeep of your household and inrelation to any specific circumstances
that may relate to you. This website only collects data on behalf of
debt management professionals, from which it will receive affiliate
remuneration for data collection only and does not itself engage in
any debt management services. Other debt management options are available
and may be more suitable. People entering into an IVA or debt management
will have this entered on their credit profile and this may affect their
ability to get credit in the short term or even in the long term in
some cases. It is free to apply from this website; you will be given
advice by debt management professionals and a 'cooling off' period,
by law, to decide whether or not the debt management plan is suitable
for you, and you should be aware that a fee will be chargeable upon
a successful arrangement, as with any commercial transaction. Failure
to meet the repayments on an IVA or any debt management programme may
result in serious consequences, including, but not limited to, bankruptcy.
Bankruptcies, CCJs and similar defaults will be entered into a public
register and will remain there for a statutory period of not less than
six (6) years.
Credit Licence number 633327.
In order to be eligible
for an individual voluntary agreement the applicant must be able to
demonstrate net earnings in excess of a certain minimum and have liabilities
of a total value of more than a certain sum and no greater than a certain
sum, and these figures will alter from one insolvency firm to another.
Normally the income should exceed these repayments after other bills
have been paid including mortgage payments and council tax and utility
bills. The usual minimum amount of debt is around £2,000 though this
can vary. A maximum of £50,000 is imposed in a few cases, although by
using a broker the client will be steered towards the best source to
attend to their own particular situation.
An individual voluntary
agreement will in general be drafted by a qualified specialist insolvency
practitioner and shall be made specifically to address the specific
requirements of the client. There is no such thing as a typical attitude
to such things because all situations are different, and some situations
differ considerably. The selected insolvency practitioner will now prepare
the best programme according to the client's own particular circumstances
and draw up a plan of repayments to a central fund and this is usually
for sixty months, although in certain situations this may change.
One major advantage
of an arrangement of this kind is that it may instantly reduce the debt
burden by a massive percentage. This reduction of the amount of debt
makes a considerable difference and is the main thing that differentiates
an IVA from a conventional debt relief program. So people looking for
any sort of debt reduction programme should apply for this over a standard
debt relief program on all occasions.
Our economy is
an extremely complex entity. Economic experts and specialists of all
types try to figure out how it operates daily. It has been compared
to a massive machine. At the end of the day economic practice impinges
upon political and social imperatives and such things are usually governed
by the society that we live in. Our society at the moment is geared
towards achievement ensuring usually means exposure to risk. As long
as we have this risk we also have the ghastly prospect of financial
ruin, both personal and corporate. Using an individual voluntary agreement
is designed to alleviate this to a certain extent.
Most kinds of individual
voluntary agreement will most often be made to serve for sixty months,
although sometimes this will vary from case to case. At the end of the
agreed term the debt is considered to be discharged. All records of
the various debts registered against the client's name will be deleted
from the record as applicable after six years.
a look at the Insolvency Service's leaflet called 'In Debt', downloadable
website is property of Individual Voluntary Agreement. Copyright 2002
-Thereafter. All rights reserved.