Individual Voluntary Arrangement
An IVA is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986. It enables an individual with debt problems to make a proposal to their creditors (the people or companies to whom they owe money) to reach a settlement.
In an IVA, an individual with debt problems will reach an agreement with their creditors to make a single reduced payment each month. This lasts for an agreed period of time, usually 5 years. Once agreement has been reached, no further interest or charges will accrue to debts. The arrangement terms are fixed and creditors cannot randomly demand changes to it.
Provided the agreed payments to the IVA are maintained, at the end of the arrangement period, the remainder of your debt is written off.
You must have at least £12,000 of unsecured personal debt to apply, although most of our IVA clients have debts in excess of this amount.
If your total debt is less than this, we would recommend you speaking to the Citizen’s Advice Bureau or the Consumer Credit Counselling Service.
IVAs are becoming an increasingly popular choice for people with debt problems in the UK. T H Corporate Services Limited are specialists in advising, setting up and supervising IVAs.
Why Might An IVA Suit Me?
An IVA is suitable when someone is unable to pay off their debts but does not want to file for bankruptcy. It can be an attractive option to all parties including the creditors as often it presents for them a better result than under bankruptcy.
It is essential that contributions to an IVA are set at a level that is affordable to you, not what your creditors would like you to pay. That way you pay what you can realistically afford without the pressure of spiralling payments.
Benefits of Individual Voluntary Arrangements
A proportion of your debt can be written off with an IVA as your repayments are based on what you can realistically afford.
Your creditors or their agents cannot harass you whilst the IVA is in force.
If you comply with all terms of the IVA, on completion you are debt free and your creditors cannot pursue you for any unpaid amounts.
There are two businesses located at the Leyland site, TH Corporate Services and a separate group company, Debt Rescue Management Limited, specialising in consumer IVAs. Both are headed up by a Licensed Insolvency Practitioner and can provide personal insolvency and debt advice. Do not hesitate to call TH Corporate Services on 01772 641146 or Debt Rescue Management Limited on 01772 977623. Alternatively, please complete the online enquiry form stating which company you wish to make contact.