IVA stands for Individual Voluntary Arrangement. It is a formal process in the UK that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time. An IVA is a legally binding agreement that is overseen by an insolvency practitioner, and it can be a useful option for individuals who are struggling to repay their debts and are looking for a way to avoid bankruptcy.
Under an IVA, you agree to make monthly payments towards your debts for a set period of time, typically five years. At the end of the IVA period, any remaining unsecured debts (e.g., credit card debt, personal loans) are written off. An IVA can help you to get your finances back on track and avoid bankruptcy, but it can also have an impact on your credit rating and may make it more difficult to obtain credit in the future.
If you are considering an IVA and are not sure if it is the right option for you, it is a good idea to speak with a financial professional or an attorney for advice. They can review your specific situation and help you determine the best course of action.