How an IVA Works
We’ll review your financial situation to determine your level of debt and what you can afford to repay each month. If an IVA is suitable, we can refer you to one our our preferred Insolvency Practitioners.
The practitioner will help you to make a formal proposal to your creditors, and, if this is accepted, no more interest or charges can be added to your debts.
Provided you maintain payments, all unpaid debt is written off at the end of the IVA, which typically lasts 60 months (5 years).
For an IVA to be a realistic option you would normally need:
- to have at least £80 spare income each month to pay towards your debt;
- to have two or more different debts; and
- to be able to pay back at least 5p for every £1 of the debt that you owe to them.