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Full & Final IVA FAQs

Q. What is a Full and Final IVA?
A. "Full and Final" IVA (Individual Voluntary Arrangement), while similar in idea to a regular IVA, is carried out much differently. A "Full and Final Settlement" IVA is often called a "Lump Sum IVA" because it involves one lump sum payment that covers all pre-existing debts owed and legally clears the debtor of further obligation to those creditors.

Q. How does the client qualify for this?
A.The client must meet the regular IVA qualifications (please see our IVA section) and having financial difficulties and a low disposable income (total income with reasonable costs of living, including any new loans, subtracted from the total). The Full and Final IVA is legally binding and all debts will be settled after the one payment.

Q. What if the client does not have the lump sum available right now?
A.The terms can provide 6 to 12 months to introduce the lump. But there must be a degree of certainty that the lump sum will be introduced.