An IVA, or Individual Voluntary Arrangement, is a legal and government approved method of resolving debt problems. It allows a person to repay a percentage of their debt back to their creditors in affordable monthly instalments over a fixed term, usually around 5 years with the remainder of the debt being written off; although it can complete in less time if there is a lump sum settlement available.

As a formal contract set up by Aperture between you and your creditors, you can be secure in the knowledge that as long as you make your monthly payments, your creditors cannot harass you or take action against you for your outstanding debt

IVA advice

Is an IVA the right solution for me?

Subject to your individual circumstances, you could qualify for an IVA. If you have debts of over £7,000 with 2 or more creditors, have a regular income and a monthly surplus of at least £50; an IVA could be the best debt solution for you.

First we will look at your current level of debt, your income and expenditure and your monthly surplus. If we think an IVA is your best option, we will draft an IVA proposal to present to your creditors for the settlement of your current debts.

The creditors will then review your proposal and they usually take a commercial view when deciding whether or not to agree to the IVA. If they are likely to receive a higher amount than they would in the event of bankruptcy, they will agree to the proposal and your IVA payments will begin.

Remember that if your circumstances change during the term of your IVA, you need to contact us so that these changes can be resolved through the process.

Criteria

  • Debts of over £7,000
  • Debts are owed to 2 or more creditors
  • A monthly surplus of £50
  • Anyone can apply (no age limit, renting or homeowner)

We think it’s important that you know all the main advantages and disadvantages of entering an IVA agreement, so we have included them below and of course, if you have any questions please get in touch!

Advantages

  • Stops further interest and charges
  • Repayments are for a fixed time period
  • When approved, all creditors have to accept
  • Supervised by regulated professionals
  • No further harassment from your unsecured creditors
  • Less likely to lose your assets and employment

Disadvantages

  • Need 75% or more of voting creditors to approve
  • Credit rating can be affected
  • Credit rating can be affected; the IVA will stay on your file for 6 years after approval
  • You may be required to release equity from your property
  • Your IVA will be listed on the Individual Insolvency Register
  • If your IVA fails, creditors can request the Supervisor to petition for bankruptcy
  • Creditors can vote to reject your arrangement
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