Given that you meet the criteria, using an IVA can essentially write off loan and other unsecured debt, including credit cards and store cards.
If your debts are £15,000 or over and you cannot afford to make the repayments on these debts and cover your living costs then, depending on your circumstances, an IVA could be a solution for you.
An Individual Voluntary Arrangement is a legally binding agreement between you and your creditors arranged by a licensed insolvency practitioner who, as your nominee, is legally authorised to represent you in negotiations with your creditors.
If after discussing your financial circumstances an IVA is deemed as the best debt solution for you, and you enter into an IVA with us, our legal team acts on your behalf to create a formal agreement between you and your creditors (the companies you owe money to).
They will arrange affordable monthly payments, usually over 5 years. After that time, any remaining debt is written off. Please note 75% (by debt value) of voting creditors must be in favour of the proposal for the IVA to go ahead.
The IVA will normally last 5 years and during this period you will be expected to pay what you can afford (at least £150) through a single, affordable monthly payment. At the end of an IVA, any unpaid unsecured debt will be written off.