The government approved debts solution

Often consumers in debt wonder what does IVA mean and try look for IVA definitions. IVA means - Individual Voluntary Agreement.  It was introduced by the government in the previous recession to help consumers get out of bad debt.

This means providing you qualify and your creditors accept the IVA you can voluntarily enter a 60 month agreement whereby you would pay a single manageable monthly payment. When you have completed your 60 month, any remaining debt would be respectfully wiped off by your creditors.

Why do creditors wiped off the debts?

Believe it or not you creditors can suffer if you fall into financial difficulties, by entering an IVA. Your creditors would receive guaranteed amount from you for 60 months. This can be viable for the creditors than if you were to just turn your back to them or go bankrupt.

Can you stick to the agreement?

Providing you stick t this legal agreement your creditors will be wiping of a majority of your debts. You would not be bothered by call or letter demanding payment.

What happens to my credit file

Soon after your IVA comes to an end, you will b provided with a ‘Notice of Satisfaction’ from all your creditors. You would need to forward this onto the two main credit reference agencies. Equifax and Experian.  They would amend you credit file accordingly. After this you can build up your credit status.