
An IVA can be simply defined as a legally binding agreement between a debtor and his creditors that is enforceable by an act of parliament, namely the Insolvency Act of 1986.
During an IVA interest and charges are stopped, and the Creditors are bound by the terms and conditions and must stop writing and telephoning you. The Creditors cannot take further legal action once the IVA has been accepted. Therefore this stops Creditors pursuing you through the County Court or filing for Bankruptcy. Creditors agree to accept a percentage of the debt payable over (normally) a five year period, after which the debt is written off.
If an IVA is best for you then your case will be handled by a Licensed Insolvency Practitioner
and you will be helped and advised on all procedures necessary to make your application.

