An IVA usually involves making 60 or 72 monthly payments. But if you have a lump sum of money you may be able to use this to agree your IVA ends earlier.
IVAs are arranged by StepChange Voluntary Arrangements, part of StepChange Debt Charity. In Scotland, a protected trust deed is a similar solution. This has different benefits, risks and fees.
An IVA is a legally binding agreement between you and the people you owe. It can only be made with the help of an insolvency practitioner (IP).
A lump sum IVA has the same benefits and risks as a regular IVA. Before considering an IVA as a debt solution, you must make sure you fully understand the benefits and risks involved when entering an IVA.
There are no set up fees.
Once your IVA is in progress, there are fees. These will be included in your monthly repayments or lump sum payment.
Fees are detailed in your IVA proposal, which an IP will assist in drafting. Any fees have to be approved by creditors. Your IP will explain what fees you need to pay for your IVA.
Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.