IVA Provider

How do IVA’s Work?

IVA is an abbreviation of ‘ Individual Voluntary Arrangement' and it forms part of the 1986 Insolvency Act.

An IVA is basically a formal, legally binding agreement between someone who owes money – a debtor – and the people they owe money to – creditors.

An IVA arrangement sets out how the debtor is going to repay the creditors and IVA’s were introduced by the Government as a way of helping people avoid bankruptcy.

IVA’s typically run for 5 years (60 months) and has to be proposed by someone called an Insolvency Practitioner or IP – who is similar to an Accountant.

Once a monthly IVA payment is agreed with the creditors, the arrangement runs for 60 months, with any balance written off at the end of the term in a lot of cases.

As an expert IVA provider, Best Debt Solution conduct a full and thorough, face to face financial review prior to applying for an IVA, meaning there is less chance of the IVA failing, unlike many IVA companies.