IVA - The History
IVA’s (Individual Voluntary Arrangement) were established in 1986 by the UK government as part of the Insolvency Act 1986.
Typically, but not always, an IVA covers unsecured creditors, not secured loans. An IVA is an agreement between someone in debt and their creditors, which is why IVA’s are unique to each individual. As the circumstances can differ by individual, debt management companies often have the experience to manage IVA’s for individuals.
- An IVA is typically an alternative to bankruptcy, but sometimes, if you have been through bankruptcy and have an IVA accepted you can apply to have your bankruptcy order annulled.
- IVA’s are applicable typically to individuals who have £15,000 or more of unsecured debt and have some level of disposable income to arrange to pay back their debts through an IVA.
- IVA’s do not apply to the UK market and Scottish law has trust deeds in their place.
If your debt level is not as serious then you may also consider a debt management plan as an alternative. By using our debt comparison form you can see what level of debt management you are eligible for, be it an IVA or debt management plan.
