IVA.TV – What is an IVA – IVA Definition

Definition of IVA

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What is an IVA? – IVA Description and IVA Definition

IVA Definition:

IVA is an abbreviated term for an “Individual Voluntary Arrangement“.

An IVA is a Government backed scheme for people who live in England, Wales or Northern Ireland and who have a significant debt problem (normally debts in excess of £15,000 and more then 3 debts (with 2 to at least 2 different credit companies)).

The IVA is a legally binding agreement between you and your credit companies.

It may help you become debt free in as little as 60 months and can lead to a substantial part of your debt being written-off.

The IVA equivalent if you live in Scotland is a Protected Trust Deed.

IVAs were introduced as a less stringent alternative to Bankruptcy and allow creditors to collect more of their debt than if you opted for Bankruptcy. People who enter into an IVA normally have to be able to afford at least £200 per month towards their debts or have an asset (i.e. equity in their home) that they can use to contribute towards their debts.

An IVA is basically an offer to your creditors that means you are willing to repay them more than if you opted for bankruptcy. IVA's are therefore also beneficial to creditors as it means they also collect more of the debt than if you opted for bankruptcy. It is for this reason they are then willing to write-off part of your debt in return.

Full and Final IVA's are if you have equity or an asset it may be possible to offer a lump sum to your creditors in full and final settlement of your debts.

If you have a severe debt problem and are struggling to meet your monthly repayments, an IVA could be the best solution for you.

  • If you owe at least £15,000 of unsecured debt
  • Have 3 or more debts
  • Have debts with at least 2 separate companies
  • After you have paid your household bills (including secured loans) have at least £200 per month left over which can be paid into your IVA?
  • Do you want to avoid bankruptcy?

Your IVA is administered by a Qualified Licensed Insolvency Practitioner. Insolvency Practitioners are recognised in law as experts and are licensed to practice by one of the following bodies who ensure their compliance and regulate their service:

  • The Association of Chartered Certified Accountants (ACCA)
  • The Institution of Chartered Accountants of England and Wales (ICAEW)
  • The Institute of Chartered Accountants of Scotland (ICAS)
  • The Institute of Chartered Accountants in Ireland
  • The Secretary of State, Department of Trade and Industry (DTI)
  • Insolvency Practitioners Association (IPA)
  • The Law Society
  • The Law Society of Scotland
  • The Law Society of Northern Ireland

A SIVA (Simple IVA) is a proposal to introduce a Simple version of an IVA and even if you are not currently eligible for an IVA or have been refused an IVA before we will be happy to register your details and recontact you upon their introduction.

Other Meanings of IVA:

IVA Doesn't only mean Individual Voluntary Arrangement. In our articles section we have summarised other meanings of IVA that may be of interest! Iva can be a girls name, a boys name (Iva is short for Ivan) or a surname. IVA is a European tax, a village in South Carolina and an abbreviation for a number of other terms i.e. Intelligent Visual Analysis, Intravenous Ascorbic acid (IVA Vitamin C), Independent Voters Association and many more.

IVA Note:
Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

It is important to get Qualified IVA Advice. We can advise if an IVA may be RIGHT for YOU.

For further IVA Information, please click on the relevant links below:

For further IVA advice, PLEASE CALL NOW ON 0800 048 3651. Alternatively submit your contact details so we can give you a call straight back (form on the right hand side of the page) or for a full application form please click here.