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An IVA is a Government run scheme to help you out of serious Debt Problems. We can offer you advice and can explain how you can be Debt Free in 60 months with upto 70% of Debts written off paying just one affordable monthly payment.

An Individual Voluntary Arrangement (IVA) is a legal process by which you can gain protection from your unsecured creditors by entering into a legally binding repayment agreement with them, which is then supervised by a licensed insolvency practitioner.

How does an IVA work?  

The arrangement is supervised by a licensed Insolvency Practitioner who is responsible for all negotiations with your creditors and for ensuring that you make all of the payments required under the terms of the arrangement. You are normally required to make regular monthly repayments, usually over a 5-year period, after which any balances remaining on your debts are written off.

If you are a homeowner, you will normally be required to release any equity you have in your property by taking out a mortgage or secured loan and paying this money to your creditors. Once your creditors have agreed an IVA, all interest and charges on your unsecured debts will be frozen.
Your supervisor in the IVA is required to review your financial situation every year and, as a result, you may be required to increase your monthly contributions into the IVA.

Trust Deeds

A Protected Trust Deed is a legal process available only to residents in Scotland whereby you can gain protection from your creditors in much the same way as with an Individual Voluntary Arrangement in the rest of the UK.
On agreement, your creditors will accept a reduced amount in full and final settlement of your debts with them.

Payments are normally made over a 3-year period, after which the balances on your unsecured debts are written off. On agreement, all interest and charges on your debts are frozen. Your protected trust deed is supervised by a licensed insolvency practitioner, who is responsible for all negotiations with your creditors and who is also responsible for ensuring that you keep to the terms of the Trust Deed.

IVA's do not have the stigma that is attached to bankruptcy, so the impact on the reputation is minimal. IVA's are not advertised in the press. However, they will be recorded on the IVA register held by the DTI. As you are currently experiencing difficulties paying your debts, your credit rating is likely to have been affected already and entering any further IVA or Debt plans could effect your rating further.

Your credit companies will want to register the missed payments that are not being paid, as a default of payment. This will almost certainly stop you from obtaining further credit whilst the credit that you already have with them is being paid.

If you would like more information about our Trust deeds or IVA's then please click here