What is an IVA?
IVA stands for Individual Voluntary Arrangement/Agreement.
When should I resort to an IVA?
An IVA is an agreement between the borrower and the lender, usually when the borrower is unable to repay the outstanding amount on a loan. The borrower or the lender may initiate such an arrangement wherein the borrower agrees to repay the amount 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, that amount may be reduced 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 not as severely as having a CCJ or claiming bankruptcy.
