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IVA
An IVA is a legally binding agreement between you and
your creditors. Due to its formal nature, an IVA must be
set up by a licensed professional called an Insolvency
Practitioner or IP.

IVAs were first introduced by the government under the
Insolvency Act 1986 as an alternative to bankruptcy. The
purpose of an IVA is to demonstrate to creditors that they
would be better off if they accepted an individual’s IVA
proposal as opposed to the individual being made bankrupt.

IVAs provide a real debt solution because they run for a
defined period of time (usually 60 months) and once
agreed, creditors by law are not allowed to add any
further interest or charges onto your debts.

Normally any unsecured debts can be included within an
IVA, these include but are not limited to:-

• Credit cards
  
• Personal loans
  
• Overdrafts
  
• Store cards
  
• Catalogues
  
• Student loans

Your eligibility for an IVA will depend on your personal
circumstances but as a guide, the following criteria must
apply to you:-

• Your personal debts should total £15,000 or over
  
• You should owe money to 3 or more creditors
  
• You must be able to offer a reasonable monthly payment (this will vary dependent upon your circumstances and the value of the debt but, as a guide, you need to be able to afford at least £200 per month)