Individual Voluntary Agreement FAQ
Saturday, 28 July 2007 15:11
What is an Individual Voluntary Agreement or IVA?
An Individual Voluntary Agreement is a legally binding agreement to pay your creditors a mutally agreed settlement. All Creditors must agree to your application. It is a legally binding agreement.

Can anyone enter into an Individual Voluntary Agreement?
Only a person with unsecured debts of more than £15,000 pounds may enter an Individual Voluntary Agreement.

Can I do it myself?
No. You must instruct an Insolvency Practitioner to act on your behalf.

Would I lose my home?
No, but you would be expected to release equity of up to 75% to help clear your debts. This would normally be towards the end of the Individual Voluntary Agreement period.

How long does an Individual Voluntary Agreement last?
Generally they run for 5 years.

What happens if I receive an inheritance or a windfall?
This would be used to help clear your debts.

Would I have to surrender my Bank Account?
Only if you have an overdraft as banks are allowed to offset this against any credit balances. If you do not owe your bank anything then an Individual Voluntary Agreement will not change your account.

Can I keep my Credit Cards?
No, these will be classed as debt.

Can I borrow money whilst in an Individual Voluntary Agreement?
You will not be able to enter in to any unsecured loan, store card or credit card agreement whilst in an Individual Voluntary Agreement. Mortgages are still an option, however see the answer regarding equity above.

Would I need to inform my employer?
No, unlike Bankruptcy you do not need to inform your employer. An Individual Voluntary Agreement will not be advertised in the press either.

What debts are covered by an Individual Voluntary Agreement?
All unsecured lending for example bank overdraft, credit or store cards, personal loans. Also included are any Vat or Inland Revenue debts.

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Last Updated on Friday, 24 August 2007 02:48