An IVA (Individual Voluntary Agreement) is designed so you make one monthly affordable payment, over the period of the IVA. The payment is made to your Insolvency Practitioner, who in turn deals with your creditors and sorts out money owed to them on your behalf in accordance with the terms set out in the IVA.
The Individual Voluntary Agreement (IVA) is legally binding. You must ensure you keep up with your monthly payments or action may be taken against you and you will most likely be made to go bankrupt. If this happens the cost of the IVA will be added on to your total debt.
During the IVA period your financial situation will be explored and reviewed on a regular basis. If there has been a change in your circumstances, for example an increase in income, or a sudden windfall, you may be asked to pay more money to your creditors, in accordance with the terms set out in the IVA.
You are required not to obtain any further credit or loans during the period of the IVA.