What is an IVA?
Your creditors cannot demand any additional payments from you unless your financial circumstances improve during the life of the IVA. During the IVA, the creditors are legally bound to freeze the interest on any outstanding debts and to cease adding late payment charges to the debtor’s accounts. Once an IVA has been successfully completed any outstanding balances must be written off by the creditors, in many cases as much as 85% leaving the debtor debt free. If you are a homeowner, you may need to release equity from the value of your home. If no remortgage is available, the IVA may be extended for 12 months.