IVA or Individual Voluntary Arrangements
IVA's, or individual voluntary arrangements, are a relatively new thing. They offer a way out, light at the end of a tunnel, a life line to those really suffering from the burden of debt.
IVA's are a legally binding agreement between the creditors (banks and other lending institutions) and the borrower to make lower payments to cover the money borrowed. IVA's can lead to up to 75% of the debts being written off after 5 years. For more about what individual voluntary arrangements (IVA's) are please click here
Individual voluntary arrangements were first introduced as part ofthe Insolvancy Act 1986. They were originally designed to provide relief to those suffering from the debt cause by business failure. In recent years there has been a large increase in consumers looking to gain the relief from an IVA due to rising debts in modern society.
