An explanation of Individual Voluntary Arrangements (IVA) and their role in debt resolution.
Individual Voluntary Arrangements (IVA) have become an increasingly popular debt resolution option for many people in the UK. In this blog post, we’ll explain what an IVA is, how it works, and how partnering with SortMyCash and Debt Guardians can help you manage your debt more effectively.
What is an IVA?
An IVA is a legally binding agreement between you and your creditors that allows you to repay a portion of your unsecured debts over a fixed period, typically five to six years. Once the IVA term is complete, any remaining debt is written off, giving you a fresh start financially.
How Does an IVA Work?
- Assessment: The first step in setting up an IVA is a thorough assessment of your financial situation by a licensed insolvency practitioner (IP). This helps determine if an IVA is the most suitable solution for your circumstances.
- Proposal: If an IVA is deemed appropriate, the IP will help you draft a proposal outlining your repayment plan. This is submitted to your creditors for approval.
- Approval: Creditors holding at least 75% of your debt value must vote in favour of the proposal for the IVA to be approved.
- Supervision: Once approved, the IP will supervise the IVA, ensuring you make the agreed payments and distributing them to your creditors.
- Completion: After making all the required payments, your IVA will be completed, and any remaining debt will be written off.
Benefits of an IVA
- Manageable payments: IVAs consolidate your debts into a single, affordable monthly payment, making it easier to manage your finances.
- Interest freeze: Once an IVA is in place, interest and charges on your debts are frozen, preventing them from increasing.
- Legal protection: An IVA provides legal protection from your creditors, stopping them from taking further action against you.
- Debt write-off: Upon completion of your IVA, any remaining debt is written off.
Why Choose SortMyCash and Debt Guardians for Your IVA?
SortMyCash and Debt Guardians are dedicated to helping you find the best debt management solution for your unique situation. By choosing us to assist with your IVA, you can expect:
- Expert guidance: Our experienced team will guide you through the IVA process, ensuring you fully understand the implications and benefits of this debt solution.
- Personalised service: We tailor our approach to suit your individual needs and circumstances, offering bespoke advice and support throughout your IVA journey.
- Trusted partners: Debt Guardians, our partner in providing IVA services, have a proven track record of success in helping people achieve debt freedom.
IVAs can be a powerful debt management tool for those struggling with unsecured debts. With the support and expertise of SortMyCash and Debt Guardians, you can take control of your finances and work towards a debt-free future.
Ready to explore if an IVA is the right debt management solution for you? Click the link below to connect with our expert team at SortMyCash and Debt Guardians.
Discover Your Debt Solution Options with SortMyCash and Debt Guardian. Click here to get started on your journey to debt freedom today.