Debt solutions
Individual Voluntary Arrangement (IVA)
One affordable monthly payment towards your debts. When your IVA ends, the remaining unsecured debt included in it is written off.
- Single monthly payment based on what you can afford
- Interest and charges on included debts frozen
- Legal protection from creditors once approved
- Remaining unsecured debt written off at the end
An IVA may not be suitable in all circumstances and fees apply. Entering into an IVA will affect your credit rating.
An IVA at a glance
- Typical length
- Usually five to six years
- One monthly payment
- Based on what you can afford
- Legally binding
- Creditors bound by it cannot take further action
- Debt written off
- Unsecured debt left at the end is written off
Understanding IVAs
What is an IVA?
An IVA is a legally binding agreement between you and your creditors to repay what you can afford, usually over five to six years. It is set up and managed by a licensed Insolvency Practitioner.
Once your IVA is approved, creditors bound by the arrangement cannot take further action against you or add interest and charges to the debts included. You make one monthly payment, and anything left unpaid at the end of the arrangement is written off.
IVAs are available to residents of England, Wales and Northern Ireland.
Living in Scotland? A Protected Trust Deed works in a similar way.
The details
How an IVA works, step by step
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Free initial chat
A confidential conversation with an advisor to understand your situation. No pressure, no obligation.
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Review your options
We explain every solution you qualify for, not just an IVA, so you can make an informed choice.
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Proposal to creditors
If an IVA is right for you, an Insolvency Practitioner prepares a proposal setting out what you can afford. Creditors vote, and if 75% or more (by debt value) of those voting agree, the IVA is approved and binds them all.
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Make your payments
You pay one monthly amount for the term of the IVA. Your payments are reviewed regularly to make sure they stay affordable.
An IVA could be an option if you:
- Live in England, Wales or Northern Ireland
- Have unsecured debts, typically £5,000 or more
- Owe money to two or more creditors
- Have a regular income and can commit to a monthly payment
An advisor will confirm whether you qualify and whether an IVA is the most suitable option for you.
Fees and costs
Initial advice is free. If you enter an IVA, the Insolvency Practitioner's fees are taken from your agreed monthly payments, not charged on top of them. All fees are set out in your proposal and explained clearly before you decide to proceed.
An IVA may not be suitable in all circumstances and fees apply.
Weighing it up
Is an IVA right for you?
Advantages
- One affordable monthly payment
- Interest and charges on included debts frozen
- Creditors cannot take legal action against you
- Remaining unsecured debt written off at the end
- You would not normally have to sell your home
Things to consider
- Your credit rating is affected for six years
- Recorded on the Individual Insolvency Register
- Homeowners may need to release equity
- If your IVA fails, you could face bankruptcy
- A formal commitment, usually five to six years
FAQs
Frequently asked questions
Will an IVA affect my credit score?
Yes. An IVA stays on your credit file for six years from the date it is approved. This can make it harder to get credit during that time.
Will I lose my home?
You would not normally have to sell your home. If you have equity, you may be asked to remortgage towards the end of your IVA, and if you cannot, your IVA may be extended by up to 12 months.
Which debts can be included?
Most unsecured debts, such as credit cards, loans, overdrafts and catalogue debts. Some debts cannot be included, such as court fines, child maintenance and student loans.
What happens if I miss a payment?
Talk to your Insolvency Practitioner as soon as possible. Payments can often be adjusted if your circumstances change. Missed payments without agreement can cause an IVA to fail.
Can I get free debt advice elsewhere?
Yes. Free, impartial debt advice is available from charities and organisations listed at MoneyHelper, a service backed by government.
Have a different question? Get in touch. We are happy to help.
Take the first step today
A confidential chat with an advisor costs nothing and could show you options you did not know you had.
All formal arrangements are serviced by Ebenegate Limited, authorised to act as Insolvency Practitioners by the Insolvency Practitioners Association (IPA). An IVA may not be suitable in all circumstances and fees apply. Your ability to obtain credit will be affected for six years.