Is an IVA Right for me? Solve Debt Problems with IVA

Are you struggling with your unsecured debt? An IVA (Individual Voluntary Arrangement) might be just what you need to solve your debt problems and allow you to become debt free in as little as 60 months.

If you are struggling with debt you are not alone, maybe people have fallen victim to the credit crunch and may have lost their jobs or had essential overtimes hours reduced or cut altogether. There are many reasons why you may come across financial difficulty, and if you are facing a mountain of unaffordable debt, don’t panic as One Advice can help.

There are a number of ways that you can deal with debt and if you have unsecured debts over £12,000 you could solve debt problems with IVA and avoid bankruptcy. An IVA helps you avoid some of the long-term restrictions of bankruptcy and protects your assets meaning that you shouldn’t have to sell your home.

An IVA requires you to enter into a legally binding contract with your unsecured creditors with the aim to help you  clear your debts and become debt free, usually over a typical period of 60 months. On successful completion of your IVA, any unpaid debt can be written off.

An IVA arrangement is not suitable for everyone with unsecured debts, therefore there is some criteria that you will need to fit:

• You must have at least £12,000 of unsecured debt
• You must be able to commit to make a set payment for the full term of the IVA
• You have three or more unsecured creditors

Always remember that you must be fully committed to your IVA, as although it allows you to avoid bankruptcy you must commit to making the agreed payments otherwise your creditors could declare you bankrupt.