IVA information
Individual voluntary arrangement
IVA stands for Individual Voluntary Arrangement. An IVA is a legally binding agreement between the debtor and creditors whereby the creditors agree to write off a proportion of the debt in exchange for affordable monthly contributions from the debtor, over a period of 5 years.
An ‘Individual’ Voluntary Arrangement by its nature varies from person to person, however the criteria to qualify for an IVA remain the same. Firstly you must have unsecured debts of over £15,000, owed to two or more creditors, and a disposable household income (funds remaining after covering all your essential living costs, such as mortgage/rent, council tax etc) of £200 or more per month. The minimum payment under an IVA arrangement is £200 per month
W3 Debt Solutions will work with you to calculate an affordable monthly amount, tailored to fit your personal circumstances. We will then approach your creditors with this offer and they will vote on the proposal. If 75%, in value, of the votes received are in favour, all creditors will be bound by that decision and you will pay this amount for a set period of time, normally 5 years. During this period your creditors are not permitted to contact you or take legal action against you. All interest & charges are frozen and what you can’t afford to repay will be written off.
It is possible to apply for an IVA if you are a home owner without risking your property, providing you keep up with your repayments. Towards the end of the agreement you will be required to obtain two mortgage quotations. If equity is available you will be required to re-mortgage your property up to 85% of it's value, and pay the proceeds into the IVA. If you are unable to re-mortgage your property, you may be required to make up to 12 further monthly payments on top of the initially agreed period.
For further information regarding an IVA please download IVA terms and conditions.