Understanding IVAs (Individual Voluntary Arrangements)
An IVA or Individual Voluntary Arrangement is a way to deal with debts you are struggling to repay. The IVA agreement is between you and your creditors (the people you owe money to).
An IVA is set up and managed by a qualified Insolvency Practitioner (IP), usually this will be a lawyer or accountant, who will work out the repayment plan and act as the go-between for the individual and their creditors. The IP will check all parties agree with the payment terms which could be monthly payments, a lump sum or a combination of both.
If 75% of creditors give their approval to the IP’s plan, the IVA will go ahead. The repayments will then be made to the IP, who will split the money between the creditors.
An IVA will usually run for 5- 6 years and IVAs are available in England, Wales, and Northern Ireland, but not in Scotland
How long does an IVA show on my credit report?
An IVA will stay on your credit report for six years.
Can Glenside Finance help me if I have an IVA?
Like other Lenders, Glenside Finance can approve car finance for individuals who have a CCJ, or IVA reported against them. If you are unsure if you are eligible or would like to discuss your options before applying, please contact us via our website chat or call us on 01942 466 035 option 2 for New Business. further information about IVAs can be found on the Citizen’s Advice website.
