Procedure of IVA loan

Individual Voluntary Agreement(IVA) is a formal contract between the lender and payer where the related parties come into the agreement that the payer has to pay the loan amount at a reduced rate. Your total outstanding will be classed into five years. Because of this nature the agreement needs to be signed under the supervision of a professional called insolvency practitioner. It is a form of legal proposal to readjust the debt burden of the applicant. And monthly payment is calculated on the basis of affordable disposable income of the applicant.

When you undertake the responsibility of the IVA loan then it is the responsibility of the IP to check the monthly payment and income structure regularly. Normally this is done once in a year and if it is found that you are maintaining a good record of payment then you can continue paying and you can also ask for increase in monthly outgoing. But if it is found that you are not maintaining a sound record then the IP will contact your lender to readjust the loan burden.


It is also possible that you may miss one payment because of some financial difficulty then you can contact your IP and usually the installment is added at the last of your tenure. When you cannot pay the amount I.e the IVA agreement turned as failure then the lender can take necessary action against you.


Usually IVA loan is settles your debts for a specified period. The rate also fixed and you have to pay that amount each month and the lender cannot claim more than the amount specified in the agreement. Once it has been confirmed that the IVA is appropriate for you then you need to check your afford-ability for the IVA agreement. After considering your financial health the rate is fixed and then you have to sign the agreement and forward the documents to your IP.