What’s an IVA ? This is one question we are constantly helping people get to grips with here at My IVA Adviser, because until the answer to this question is understood, there can be no progress.
So, what’s an IVA?
An IVA is legally binding agreement between a debtor and all his creditors which reschedules all his outstanding unsecured debt repayments into one affordable monthly repayment.
The IVA has a fixed time period, which is usually 5 years, after which time any unpaid debt is legally written off.
Once an IVA agreement has been reach with the creditors at the creditors meeting, they forfeit their ability to take legal action against the debtor with regard to his debts, as long as the IVA is being completed satisfactorily.
Whilst the IVA is in place, all creditors are legally obliged to stop charging interest payments and are barred from adding any other charges either.
During the IVA, the Insolvency Practitioner who is administering the IVA will deal directly with all creditors involved because the creditors are legally obliged to refrain from contacting the debtor whilst the IVA is in place.
These are the fundamentals of how an IVA works.
If you would like further information about IVAs or if you would like to explore whether an IVA is the right way forward to your debt problem then call My IVA Adviser on 0800 088 7503.
If you would like to see if you qualify for an IVA, then try out our Debt Calculator.
If you think you qualify, call My IVA Adviser for a ‘no obligation’ consultation on 0800 088 7503.
Or, if you want to know why you should call My IVA Adviser, then you take this link and see why we are the best IVA company to present your IVA application.
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