Increased borrowing across the last 15 years has
resulted in a nation with a debt problem. Thousands
of people’s borrowing across the UK is out of
control and the time has now come for a permanent
remedy. This government-backed solution is aimed to
help people really rid themselves of their debt
problems. This is not debt management – this is debt
solution. The product is called an Individual
Voluntary Agreement (IVA.) Your customer’s debt
could be written off in 5 years time, with interest
payments frozen, and overall amount to repay
reduced.
IVAs were introduced as part of the Insolvency Act
of 1986 as an alternative to bankruptcy, enabling
individuals who were struggling with unsecured debt
payments to reach a compromise with their creditors.
An IVA is a legally binding, court-approved
agreement between the individual and his/her
creditors, under which the individual agrees to make
affordable fixed monthly payments, generally over a
five-year period.
More Information on IVA
The debtor avoids bankruptcy, which can be of
particular importance for homeowners or those
employed in occupations where bankruptcy would be
highly disadvantageous. The IVA conveys a
legal obligation on the creditors to freeze all
interest and charges and, subject to adherence of
the terms by the debtor, to write off any
outstanding debts after expiration of the fixed
period. An IVA therefore provides both security and
reduced pressure for the customer.
