{"id":3540,"date":"2014-01-22T12:09:26","date_gmt":"2014-01-22T12:09:26","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=3540"},"modified":"2019-03-08T12:14:16","modified_gmt":"2019-03-08T12:14:16","slug":"what-is-the-purpose-of-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/what-is-the-purpose-of-an-iva\/","title":{"rendered":"What is the Purpose of an IVA?"},"content":{"rendered":"\n<p>The purpose of an IVA or Individual Voluntary Arrangement is really \nto strike a balance between creditor and debtor. If you can\u2019t manage to \npay your debts as per the agreements you originally took out, an IVA can\n help you to avoid bankruptcy.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Through an IVA, you can agree to pay your creditors a set amount over\n a fixed period, after which they agree they will no longer pursue you \nfor these debts (providing you keep up with the IVA payments throughout \nthe period specified).<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"410\" height=\"293\" src=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/03\/Fotolia_251085335_XS.jpg\" alt=\"Debts\" class=\"wp-image-3545\" srcset=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/03\/Fotolia_251085335_XS.jpg 410w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/03\/Fotolia_251085335_XS-300x214.jpg 300w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/figure>\n\n\n\n<p>Although this almost certainly means that the creditors receive back \nless than what the original credit agreements contained, it does mean \nthat they are likely to recoup more of the outstanding borrowing than if\n you were then to become bankrupt.<\/p>\n\n\n\n<p>An IVA is therefore a way to provide you with the opportunity to \nclear your debts in the long term and for your creditors to gain back at\n least some of what was borrowed. If your financial situation is out of \ncontrol, an IVA can help to bring it back under control and set you back\n on the path to financial health down the line.<\/p>\n\n\n\n<p>The practise of agreeing to pay back your creditors at a rate that is\n less than that outlined in your credit agreements etc, is actually \nsomething that you can also do on an informal basis. However, by using \nan IVA instead, you also have a degree of legal protection that you do \nnot necessarily have with an informal arrangement.<\/p>\n\n\n\n<p>Using an IVA therefore gives you the security of knowing that, \nproviding your creditors agree to the arrangement, and you then stick to\n it, you are protected from further legal action regarding these debts.<\/p>\n\n\n\n<p>IVAs therefore act as a kind of mediation between you and your creditors, protecting your interests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you can\u2019t manage to pay your debts as per the agreements you originally took out, an IVA can help you to avoid bankruptcy.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-3540","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=3540"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3540\/revisions"}],"predecessor-version":[{"id":3551,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/3540\/revisions\/3551"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=3540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=3540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=3540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}