If your unsecured debt is over £15,000, an IVA might be the best legal option for you. It is a better alternative to bankruptcy and you only have to pay your debt once a month, even with multiple creditors. After a period of five years you can usually become debt-free.
Individual Voluntary Arrangements are legally binding agreements between your creditors and yourself. Once the IVA is active, your creditor will most likely stop charges and interest on the debt you have.
After a period of 60 months has passed and if you have kept your part of the deal, the debt will be written off by the creditors.
Can I apply for an IVA?
There are some minimum requirements that you must take into account. You must have more than £15,000 in unsecured debt, must have proof that you are currently employed. You must also prove that your financial situation doesn’t allow you to make your current monthly payments in full and must have debt with at least three creditors. You must also be a UK citizen to apply. An IVA may be applied in England and Wales.