What is an IVA?
An IVA is an individual voluntary arrangement that is made between a borrower and a lender when the borrower does not have enough money to pay off the loan that has been given to them. This could be because of other debt, lost wages or even a lost job. When the borrower approaches the lender for the agreement, they work through the client’s finances and negotiate how much the person will be able to pay back and get debt advice. Once the agreement is made, the person then makes the payments according to the terms. If the person misses a payment or late then the lender can take action according to the laws in the area and according to the contract that has been made. Normally these IVAs can debt help a person with insolvency to the point that they can become clear of their insecure debts which is what they are created to do.