IVA/PTD
Voluntary Arrangement
A voluntary arrangement gives people who are struggling with a high level of debt the opportunity to clear their credit in a guaranteed time frame, usually 5yrs, by making an affordable monthly payment.
You are required to make regular monthly repayments for the term of the IVA. After this term any balance remaining on your debts is written off. Once the arrangement is in place all interest and charges are frozen and your creditors are not allowed to contact you.
You enter into a legally binding repayment agreement with your creditors, that is supervised by a licensed insolvency practitioner who is responsible for negotiating with your creditors and regularly reviewing your circumstances. Your payment may alter if your disposable income changes. Homeowners are normally required to release any equity in their home and contribute this to their creditors.
If you are a homeowner with equity in your property then an IVA may not be the best solution for you. Click here for information on our Debt Management Programmes
A trust deed is available to residents of Scotland and works in much the same way as an IVA, but usually over 3yrs.