What is Individual Voluntary Arrangement or IVA

A formal and legally binding agreement between you and your creditors to repay your obligations over time is known as an individual voluntary arrangement, or IVA. This indicates that it has been accepted by the court and that your creditors must abide by it.While you have an IVA your creditors should stop:
interest charges on debts
pursuing you to collect your debts
When you are enrolled in an IVA, you must:
make the agreed-upon instalments, which are often made in a lump sum or a single monthly payment.
If your income increases or you receive any extra money, inform your IVA provider.
not obtain new credit, such as loans, without permission.
Any amount of debt is eligible for inclusion in your IVA. There are no upper or lower bounds. Since an IVA has significant fees, it might not be the best choice if your total debt is less than £10,000.
You should look at other choices for getting out of debt if you don't have a big sum of cash or recurring payments to make into an IVA. You can find out more about various debt solutions.
A qualified individual known as an insolvency practitioner must set up an IVA. For the IVA, the insolvency practitioner will charge fees.