Individual Voluntary Arrangements (IVAs)

What is an IVA?

If you are struggling with your debt repayments there is government legislation available, called an IVA, which could help you to write off debt you cannot afford. It is a type of "Debt Forgiveness Program".

Under this government initiative you need to show that you cannot afford your debts. This is done by showing that your monthly living costs including debt repayments are more than your monthly income.
You agree to pay a monthly amount that you can afford and at the end of the plan any remaining debt is forgiven and written off. On average, our clients achieve a debt write off between 60-70% of their debt.

	1 easily affordable monthly payment based on your income and expenses
	Unlike some of our competitors, we do not charge any Upfront Fees, saving you £100s
	An IVA offers you protection from creditors
	An IVA offers you protection from creditors
	Creditor pressure stopped as creditors must deal with us
	Most IVAs last for just 5 years (occasionally longer, although some can last a few months)
	All interest frozen immediately
	Suitable for tenants or homeowners, individuals or couples, and even business owners
	We can setup an IVA in as little as 4 weeks
	Only 75% of your creditors (by debt balance) need to accept your proposal to make it legal

 What living costs are allowed in an IVA?
In an IVA you will have an agreed budget for your all your living costs. There are allowances made for this in the agreement. These expenses will be mostly based on what you currently have to pay out each month. You should declare all normal monthly expenses to your creditors so they understand your situation more clearly. There may be some restriction on some expenditure items, such as mobile phone for example.

Your IVA payment is what is left after all your living costs have been taken into consideration.

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Debt Management

What is a Debt Management Plan?

A Debt Management Plan (also known as a DMP) is an informal arrangement between you and your creditors that enables you to repay your debts at a rate you can afford. When you originally took out your loans and credit cards you agreed to a repayment that was based on how much you borrowed and also an interest rate. If you are now struggling to make the agreed repayments you need to do something to make the monthly payments more manageable. This is where a Debt Management Plan can help.

	An Informal agreement that can be stopped at any time as your circumstances change (for better or worse)
	Interest & Charges could be frozen if creditors agree
	Creditor pressure eased as they deal with us
	1 easy monthly payment to cover all unsecured debts
	Creditor pressure stopped as creditors must deal with us
	A debt management company will negotiate with creditors on your behalf, so offers are more likely to be accepted and interest frozen than if you try to do this yourself.
	All interest frozen immediately
	A debt management company will help you prepare your plan, including agreeing the level of your household and personal spending based on guidelines, which can then be used to put your case to the creditors.

What happens in a Debt Management Plan?

Under a Debt Management Plan you look at your monthly income and essential monthly expenditure (house, car, food, clothes etc). After you have paid for all these essential items any money left is called your disposable income. This is what you can offer to all your creditors to settle your debts.
National Debt Relief advise thousands of people on this every month. We can also manage your debt plan for you. Call us to find out more.

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