There has been some confusion as to what an IVA can actually do for you. It has been discussed in the news and media to ad nauseam, however people still seem to be a little confused as to the true facts surrounding IVAs. So here are a few IVA facts that are imperative to know if you are thinking about taking out such a serious debt solution.

• IVAs were originally set up in the 1980's to be a legitimate alternative to bankruptcy for people who owned their own business or were entrepreneurs.
• IVAs are legally binding document, governed by the Insolvency Act 1986.
• If you default on an IVA repayment you may be forced to declare yourself as bankrupt.
• An IVA will usually last 5 years – or 60 months of repayments – with an extended one year, without repayments for it to stay on your credit rating. So that is 6 years in total, however it is not unheard of for IVAs to continue for longer than that, if say your spouse died and your financial situation changed for the worse. It is very important that if your financial situation changes you inform your insolvency practitioner as soon as possible so he can try and rearrange your IVA and a new deal with your creditors.
• An Insolvency practitioner will be assigned to your case for the duration of your IVA. He or she will be able to advise you on the best course of action for your debt to be paid off.