IVA Companies
IVA companies will arrange an IVA (Individual Voluntary Arrangement) on a customer's behalf. They work with both the client (the debtor) and the creditors (companies/organisations to whom money is owed) to come to a suitable arrangement.
What an IVA company can normally offer a person with a substantial amount of debt:
- They can normally stop legal proceedings going any further.
- They can cancel or reduce interest charges.
- They can agree a reduced and affordable monthly payment between you and your creditors.
- They can stop you receiving demanding letters and phone calls from your creditors.
- They can give you the chance of having a fresh start and peace of mind that you are finally getting out of debt.
- They can help you avoid bankruptcy (although this will depend upon you meeting the monthly repayments).
However:
- It should be noted that taking on an IVA should not be seen as an easy way out and it does not guarantee that you will not fall into bankruptcy.
- Be very wary about any companies that ask you to pay money up front. Most decent IVA companies will not charge you a fee directly; rather they will take a cut of the money that you repay to your creditors.
You can find organisations that deal with IVAs by searching on the Internet.