If you have unsecured debts over £15,000 then you might be thinking about seeking professional IVA advice.

An IVA is a potential debt solution for those looking to avoid bankruptcy, and getting IVA advice is the one of the best ways to see if an IVA is right for you. The typical criteria of an IVA is that you need at least £15,000 of unsecured debt  (debts which are not secured against any asset, such as credit card debt or personal loans).

What is an IVA?

IVA stands for Individual Voluntary Arrangement. An IVA is a legally binding formal agreement between you and your unsecured creditors where you agree to pay a set amount over a fixed term, and the rest can be written off on successful completion of the IVA.

For the IVA to go ahead it must be approved by your creditors. For the IVA to be accepted, 75% of your creditors (in terms of debt value)  must agree to the IVA.

Typically an IVA means that you will make one affordable monthly payment over 60 months. You will be free from your unsecured debt on completion of the IVA. The exact workings of your IVA will be dependant on your personal situation which is why it is essential for you to seek IVA advice.

IVA Advantages:

An IVA offers a certain amount of debt relief whilst still allowing you to avoid the effects of bankruptcy. One of the many IVA advantages is that you make a monthly payment which is affordable to you, meaning that you should find that you can afford your secured debt repayments, such as your mortgage.

There are a number IVA advantages, and the best way that you can discover if you can be debt free in 60 months with an IVA is to get IVA advice.

IVA Disadvantages:

Although there are many advantages of an IVA, you should also be aware of any IVA disadvantages. You have to commit to making the payment for 60 months and failure to do so could result in bankruptcy.

You need to be employed as an IVA means that you commit to making set payments to your creditors and for that to happen you have to have a stable income. For further IVA advice about the criteria of an IVA, please get in touch with one of our IVA advisers. Even if an IVA is not right for you there are alternate debt solutions, such as a debt management plan.