IVA Debt

What is an IVA?

An individual voluntary agreement (IVA) is an agreement involving you and your creditors to help you pay off your debts at an reasonably priced.

IVAs are no presented if you live in Scotland. In Scotland, you would require a protected Believe deed is a related solution, but it’s important to note that it has dissimilar profit, risk and charge associated with it.

What is 'Debt'

Debt is an amount of money borrowed by one party from one more. Debt is used by a lot of corporation and individuals as a scheme of creation big purchase that they could not afford under common circumstances.

A debt arrangement gives the borrowing party permission to borrow money under the situation that it is to be paid back at a later date, generally with interest.

Debts included and excluded in an individual voluntary agreement

An individual voluntary agreement is a lawfully required agreement between you and your creditors to help you pay off your debt. Most of your debts will be included in an individual voluntary agreement and when the contract ends, any remaining balance should be written off.

There’s no maximum value to the amount of debt included in an individual voluntary agreement, however chances debts cannot be included.

Is an individual voluntary agreement right for you?

What debts does an IVA include?

When you enter into an IVA most of your debts are going to be involved:

• Catalogues

• Personal loans

• Overdrafts

• Credit cards

• Gas and electrical arrears

• Council tax arrears

• Water arrears

• Payday loans

• Store cards

• Income tax and Social insurance arrears

• Tax credit or profit overpayments

• Debts to family and friends

• Any Alternative outstanding bill, for ex - solicitor’s Prices, invoices for building work and veterinary bills

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