What is an IVA?
IVA stands for Individual Voluntary Arrangement/Agreement.
When should I resort to an IVA?
An IVA is an agreement between you and your lender when you are unable to repay the exact amount. Either you or the lender may initiate such an arrangement where you repay the amount due with new terms and conditions.
Is it true that you pay less with an IVA?
Generally, you have to repay the whole amount. However, if the lender agrees, the amount may be reduced by up to one-third of the outstanding amount. But as always, the lender has the last say in such a scenario.
Does an IVA affect my credit history?
Yes, an IVA does affect your credit history but the effect is not as severe as a CCJ or bankruptcy.
