An IVA is a legally-binding arrangement to pay an agreed amount off your debts over a set period. Any unpaid parts of the debts that were included in the IVA are written off when the arrangement is completed.There are both advantages and disadvantages to IVAs.
We would urge anyone considering taking out an IVA to seek full advice to ensure this is the best option for them. From the information that you have provided, an IVA would not be a good option for you. This is because you will pay back far more than you owe.
The terms and conditions of the IVA will outline that a pension, equity in a property or a lump sum of money can be used to repay your total debt on the final year of the IVA.
We would also advise you not to borrow further funds against your property because you are putting your property at risk. If you feel that you do require further financial assistance, then please contact the Money Advice Service, which is an independent body, on 0300 500
You have specifically asked whether creditors will write off your debt and, based on the circumstances that you have provided, I feel it is unlikely. However, there may be alternative options for you when dealing with your debt.
Lastly, it is important to complete a realistic household personal budget sheet. You can call us directly to do this on 0808 808 400 or you can go online at mymoneysteps.org. A budget sheet can help you to offer reduced payments to all of your creditors but, based on your circumstances, you may also be eligible for a Free Debt Management Plan.
This is where you will make one payment towards all of your debts each month. As we are not fully aware of your situation, it is probably best that you call us directly to discuss your options in much more detail. Please be aware that this is in confidence and you can contact us at National Debtline on 0808 808 4000.