Individual Voluntary Arrangement (IVA)
Legal & insolvencyA formal agreement in the UK to repay a portion of debts over time.
Overview
An IVA is a legally binding agreement with creditors, arranged by an insolvency practitioner. It can provide a structured way to manage debt but affects your credit profile.
It is important to get independent advice before entering an IVA.
Why it matters
- It can reduce access to credit while active.
- It is a significant entry on your credit report.
- Rebuilding credit afterwards requires consistent positive history.
FAQs
Is an IVA better than bankruptcy?
It depends on your situation. An IVA can be less restrictive for some people, but it is still a serious commitment.
Will an IVA affect my credit score?
Yes. It is a major negative event on your credit report.
Related terms
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