Before you start an IVA

Who pays for your IVA? Both you and your creditors shoulder the cost of clearing your debt. What you end up paying monthly will be based on your situation and what is considered affordable and realistic for you.

Once you have finished the term of the IVA:

Your creditors are legally bound to write off any remaining debt under your account, including any fees for the company that arranged and supervised your IVA.
Costs that cover initial meetings with your Insolvency Practitioner should also be covered in your monthly payments.
With an IVA, as long as you stick to the agreed terms, you will only have to pay the amount specified as your monthly repayment.

Before the IVA: What is the IVA Process?

The process for acquiring an IVA officially starts once you find and choose an Insolvency Practitioner to help you with your IVA proposal.
Insolvency Practitioners are accountants and lawyers specializing in insolvency services; IPs, as they are commonly called, can be contacted through various organizations that offer assistance for debt management.
You will need to work closely with the IP handling your IVA in gathering and preparing the required documentation and in working out a payment proposal. More information on the IVA Process.

Will IVAs free you of your debt?

You can become free of all your unsecured debt if you complete your IVA successfully.
You will need to maintain the regular monthly repayments for the entire duration of the IVA as stated on your agreement.
You will also need to cooperate with your Insolvency Practitioner who will be conducting regular check ups on your financial situation to asses if any changes need to be made to your payment scheme.

Before taking on the IVA: What will happen to my creditors:

Upon approval of your Individual Voluntary Agreement proposal, all of your creditors will be prohibited by law to contact you or demand payment for your debt.
The Insolvency Practitioner handling your IVA will serve as mediator, making arrangements between you and your creditors to ensure the smooth processing of your IVA.
Any communication that needs to be conducted between you and your creditors will have to go through your Insolvency Practitioner once the IVA is put in place.