If you’re struggling with debt, and it feels like it’s getting on top of you, an Individual Voluntary Arrangement (IVA) might be an option to consider.

It’s a more serious step than a Debt Management Plan (DMP).

It’s a more formal agreement to repay debt in a way that you can manage.

The Money Part: How IVAs Work

• A Formal Agreement: An IVA is a legal agreement between you and the people you owe money to.
• Payments You Can Afford: You make regular payments to an insolvency practitioner. Payments are based on what you can afford.
• Debt Write-Off: If you stick to the agreement, some of your debt might be written off. Meaning you won’t have to pay it back.
• How Long They Last: IVAs usually last for five or six years.

IVAs are a serious way to deal with debt and they’re not for everyone.

The Real Life Part: A Chance to Rebuild Your Finances

It’s not just about the legal side of things, is it?

It’s about having a chance to get a fresh start and put your debt behind you.

The feeling of being weighed down by debt. The constant pressure of people chasing you for money. An IVA offers a way to get out. To have a bit of breathing space and a chance to rebuild your finances.

• Debt Relief: You might not have to pay back everything you owe, which can be a big help.
• More Manageable Payments: An IVA sets up a structured payment plan, so you know what you have to pay each month.
• A Fresh Start: Completing an IVA can help you improve your credit rating, which can make things easier in the future.
• Protection from Creditors: An IVA can stop the people you owe money to from taking further action against you.

IVAs are a big commitment. But they can offer a chance to get your finances back on track.

Tips:

• Get Professional Advice: Talk to an insolvency practitioner or a debt advice charity before you decide.
• Be Honest About Your Situation: Tell them everything about your debts and income.
• Understand What You’re Agreeing To: IVAs are legally binding. So make sure you understand the rules.
• Make Your Payments Regularly: Stick to the payment plan or you could get into more trouble.

An IVA is a serious step. But it can be a way to get your debt under control. It’s about getting a fresh start and taking control of your finances.