An IVA is an individual voluntary arrangement between you and your creditors, whereby you agree to repay a portion of the debts in return for having the remainder written off. It is classed as a formal arrangement with your creditors and can only be arranged through a licenced insolvency practitioner.
There are two types, one, a full and final IVA is where you make a lump sum payment and the remainder is written off. The alternative, is to draw up a budget and pay what you can afford each year for five years, with the remaining balance written off after five years.
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