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If you have a significant debt problem (normally over
£20,000), you may be eligible to begin a legal process known as an
Individual Voluntary Arrangement.
This means that your creditors accept a
reduced offer of repayment to settle their debt. By entering into an IVA,
your total debt repayments - including costs - can be reduced by up to
75%!
Payments are usually made over five years, after which the remainder of
your debt is written off. During the repayment period, all interest and
charges are frozen and you will receive no more correspondence from your
creditors. There are similar arrangements in Scotland, but the time factor
to be debt free is only 3 years compared to 5 in England & Wales.
Individual Voluntary Arrangement (IVA):
All interest and charges on your account are frozen.
Your account is administered by a fully qualified, licensed insolvency
practitioner, who takes responsibility for liaising with your creditors
and distributing funds on your behalf.
An IVA is a legal process for UK residents (excluding Scotland) with a significant
debt problem.
On agreement your creditors will accept a reduced offer of repayment in full
and final settlement of the debt. Payments are normally made over a 5 year
period, following which the remainder of your debt is written off.
Check out the links on this page to compare IVA assistance and brokers. |
