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Individual Voluntary Arrangement (IVA)

Monthly Contribution IVA

This is where the individual offers monthly voluntary contribution payments for a usual period of five years, this will vary on a case to case basis. The amount that is offered is whatever the individual can reasonably afford, it can be as little as £200 per month and will usually be substantially less than debt repayments that were previously being made. All interest and charges will be frozen during the course of the IVA, and at the end of the five year period the arrangement is concluded and the remainder of the creditors’ debts are written off.

Lump Sum Settlement IVA

An alternative to a voluntary contribution IVA, the lump sum IVA involves the payment of a one-off lump sum in full settlement of the debts. Such a proposal may be suitable where maximum offer for a remortgage or secured loan for consolidation is not enough, or a family member is prepared to make a one-off payment that generates a higher dividend than if monthly payments were made or where there is equity in a property that can be re-mortgaged. A lump sum IVA may be attractive to creditors, as it will enable them to be paid in a matter of months rather than waiting for up to five years. You will benefit from the potential remortgage as well as your referral fee from TCF in recognition of the works undertaken by yourself to identify the case and prepare the relevant documents.

Monthly Contribution + Lump Sum IVA

Where a client may have substantial debts and could only offer a low monthly contribution in their IVA, but own their own property, TCF Debt Solutions may be able to negotiate a lower monthly contribution with a lump sum paid towards the end of the IVA. This can be arranged by way of a re-mortgage. Your client will always be referred back to you where a re-mortgage requirement arises.

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How does an Individual Voluntary Arrangement (IVA) work?

IVA Details