If you are struggling to maintain repayments on:
- credit cards
- other credit, such as overdrafts
- store cards and catalogue accounts
- council tax arrears
- gas and electric arrears
They all can be included in a government legislation scheme called an Individual Voluntary Arrangement (IVA). The scheme helps reduce the repayments to an amount you can afford, but unlike other debt management products it has a fixed duration, after which all the debts and arrears will be wiped clear (written-off) and you will have nothing else to pay towards them.
So do I end up paying less than I owe?
In the vast majority of our cases, Yes. – As you still need to afford living arrangements, food and other necessities, those essential costs are deducted from your income to form a ‘contribution’ which can be put towards the owed loans, credit and arrears. If you are struggling, that contribution would be less then what you are expected to pay to them. An IVA has a fixed term (usually 5 years) of making your affordable contribution with no worry of interest rates and creditor charges, so it is common to see a substantial amount written off on completion and much less than what you would have had to pay back with other arrangements.
Try our calculator. – It will give a good indication of the outcome of your options.
There are some particular criteria and considerations for an IVA that we will need to discuss with you, but when it is suitable, you may find that not only can you write-off some of your debts and get debt-free quicker, but there are other distinct advantages which other solutions can not offer. Such as:
- legally protecting your home and assets
- legally guaranteeing that the creditors cannot take further action. Threats, bailiffs, property charges etc
As you can see, the arrangement we offer has legal backing. That is where we come in, unlike other solutions and IVA can only be administered by a regulated and licensed Insolvency practitioner. Citizens Advice routinely direct suitable people to Insolvency practices, we are the the only organisations able to offer further advice on IVAs.
Avoid the unregulated firms and call centres that frequently hit the news for the wrong reasons and get good, impartial advice from us now, before your situation becomes out of hand.