An IVA or Individual Voluntary Arrangement is a formal agreement between an individual and their creditors. The IVA is a legal binding agreement that is supervised by an Insolvency Practitioner. The IVA will last for a period of (60 months / 5 years) and after that exact end date of 60 payments, you will be clear of debt. Any remainder owing to your creditors after the 60 month payment period is written off.
- If you own your own property and have a fair amount of equity / savings, you may be required by the creditors to re finance your home in the later stages of the IVA and extract extra funds to make up a larger contribution toward the total repayment. This could also extend the 5 year standard period of your IVA.
In Scotland, and IVA is known as a Trust Deed. These tend to have slight differences, mainly in the length of time they take to clear. A Trust Deed usually takes 4 years or 48 months but can be up to 5 years in certain cases. Find information about the available personal debt solutions in Scotland.
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