An IVA is a form of insolvency. It’s an agreement made between you and your creditors that allows you to pay off a percentage of your debt within a fixed timeframe.
After you’ve made all the payments, any remaining debt is written off. However it’s important to make sure that you stick to the terms of your IVA, otherwise it could fail.
An IVA is only available in England, Wales and Northern Ireland. If you live in Scotland you may be able to apply for a protected trust deed. This is a similar solution, but it’s important to note that it has different benefits, risks and fees associated with it.
Is an IVA right for you?