IVAs are a way of reducing your debts to a manageable level, without having to go bankrupt or take out any additional credit.
IVA is a legally binding agreement between you and your creditors to pay back the money you owe with an affordable monthly repayment over a period of (usually) 5 years. The single, affordable monthly IVA repayment is based on your disposable income and budget.
During the period of the IVA, your creditors must freeze any interest on the debts, and they are not allowed to pursue the debt, or instigate any legal action to recover it.
At the end of the IVA, assuming all the requirements of the IVA have been satisfactorily met, all of the debts are cleared and effectively written off and you become debt free.
The most recognised debt solution is Bankruptcy. Bankruptcy is the most severe consequence of debt and should never be entered into lightly. For some people, however, going bankrupt may be the most appropriate solution. It can be the best way to repay what they can of their debt, write off the rest – and make a fresh start.