An IVA (individual voluntary agreement) is designed to help people avoid bankruptcy. If you are declared bankrupt your assets can be taken, you will have a CCJ (county court judgement) against you and may not be able to get credit in the future. In some cases you can even go to prison.
IVAs are backed by the government, as a mans of preventing these problems. If you get an IVA, you agree to pay a certain amount of money every month. This goes into a special bank account, from which the money is then shared among your different creditors. You have to keep up the payments or the agreement breaks down; but as long as you honour these, you wouldn't normally be declared bankrupt or lose your possessions.
If you click here, you can get an overview of how IVAs work.
IVAs are backed by the government, as a mans of preventing these problems. If you get an IVA, you agree to pay a certain amount of money every month. This goes into a special bank account, from which the money is then shared among your different creditors. You have to keep up the payments or the agreement breaks down; but as long as you honour these, you wouldn't normally be declared bankrupt or lose your possessions.
If you click here, you can get an overview of how IVAs work.
