If you have debt problems you may have heard your friends or advisors you have spoken to talk about a debt solution called the IVA or Individual Voluntary Arrangement.
It is often advertised across the internet by lead generating companies, as "Government IVA advice".
The intention of those advertising and creating search engine terms in this way is to try to get you to believe either (1) that they have been authorised by the Government to provide the solution or (2) the solution is one which has been specifically promoted by government.
Neither of these unsurprisingly is true.
The IVA has been in existence since 1986, and was introduced via the Insolvency Act of that year.
The only way it is connected to "Government" is that it is in an Act of Parliament.
It was initially used from 1986 to about 2000, as a way for company directors who has got themselves in difficulties to make payments to their creditors, as an alternative to bankruptcy which would have meant that they could no longer act as a company director.
The IVA has also not been promoted by Government.
It is one of a range of solutions available to those licensed to provide debt solutions in England and Wales.
It is highly promoted and in my opinion mis-sold because the companies who offer it can make a lot in fees from it and those who are charged with selling it for the companies are heavily commissioned from "selling" this solution.
My advice to anyone who has only called one debt provider and has been told that the IVA is the solution for them is to take a second opinion form a firm which does not just offer the IVA.
A firm such as our for instance.
We have no incentive to push you down any particular debt solution.
We will always offer you the best solution for your circumstances.
If it happens to be an IVA, well great, if not we won't recommend it just to earn a fee.