Published in IVA Focus Features on Thursday, October 12 2006

An Individual Voluntary Arrangement or IVA is a government solution to help people get out of debt. In it you are required to pay only what you can afford each month (based on a detailed household income and expenditure) and over a reasonable period of time - 60 months. What ever is left unpaid is written off as part of the terms of the IVA. Most unsecured debts can be included and whilst in an IVA your interest and charges are automatically frozen, and your creditors can’t contact you.

The advantages include one lower monthly payment and a definite end to your debts as well as no longer having to worry about the creditors hassling you. However if you miss payments you can be made bankrupt, it will affect your credit rating; you can’t get any unsecured credit whilst in the IVA, and if you need a good credit score for your employment it could affect your job.

To see if you are eligible click here.