An IVA, or Individual Voluntary Arrangement, is a formal deal between you and your creditors to pay off your debts over time.
You work with a specialist who figures out how much you can afford to pay each month. If creditors holding at least 75% of your debts agree to the plan, it becomes legally binding.
You make regular payments, usually over five to six years, and any remaining debt at the end is typically written off.
It’s a way to avoid bankruptcy while still managing your debts, but it’s important to get advice before committing to one as the effects this will have on your credit file is severe and it can impact your credit file for much longer than a Bankruptcy.
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