How do I…apply for an IVA?

An Individual Voluntary Arrangement, or an IVA, is a legally binding agreement between you and your creditors. It is one of many solutions to help people who are in financial difficulty.

An IVA allows you to make regular monthly payments to your creditors with the security of knowing that they are legally bound by the agreement. This means that they cannot apply interest and charges or pursue you with any further legal action, such as a County Court Judgement.

An IVA generally lasts for five years, however it can be longer with one of the most common reasons depending on whether you have a property and whether you are able to release equity from it.

With many people delaying the chance to get debt advice some may find themselves in a worse situation. We would always advise people to seek debt help as soon as they can. Here is a guide to show you what to do in preparation for applying for an IVA.

The first thing that you need to do is to do your research and find a recommended company…

Contact your local Citizens Advice Bureau or contact National Debtline who will be able to provide you with a list of recommended companies.Speak to friends, family or your employer as they might be able to recommend a reputable company to you.Visit forum or review sites to see what other people have done in your situation and find out about their experiences with different companies.

Once you have found a company that you are comfortable with you will need to gather the following information together in preparation…

A list of all of your creditors, including account numbers and amounts that you owe.A list of your income and expenditure, as this will help to determine what surplus you have available to pay your creditors.Gather information about your assets such as your car, home (including your outstanding mortgage balances and value) and savings.

This should help you in your journey to become debt free through a IVA.

If you would like to speak to one of our debt specialists, then please call 0800 2945205 or fill in our online referral form and we will call you back.

Written by Gemma on April 18th, 2012

Filed Under  debt help, Payplan   |  Trackback  |   Leave a Comment

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