What is an IVA?

An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.

An IVA can give you more control of your assets than bankruptcy.

Find out if you qualify

How an IVA Works

We’ll review your financial situation to determine your level of debt and what you can afford to repay each month. If an IVA is suitable, we can refer you to one our our preferred Insolvency Practitioners.

The practitioner will help you to make a formal proposal to your creditors, and, if this is accepted, no more interest or charges can be added to your debts.

Provided you maintain payments, all unpaid debt is written off at the end of the IVA, which typically lasts 60 months (5 years).

For an IVA to be a realistic option you would normally need:

  • to have at least £80 spare income each month to pay towards your debt;
  • to have two or more different debts; and
  • to be able to pay back at least 5p for every £1 of the debt that you owe to them.

Benefits of an Individual Voluntary Arrangement (IVA)


  • Approval of an Individual Voluntary Arrangement (IVA) isn’t guaranteed, creditors may reject the proposal.
  • Your Credit File will be affected for 6 years.
  • Your information will be placed on an insolvency register (which is a public register).
  • There are costs involved with an IVA, which are outlined in our Fees & Key information section. However, costs are deducted from the monthly payments you make, which will be fully explained to you over the phone and further outlined, again in full detail, in your individual IVA proposal.
  • You won’t be able to obtain credit during the solution term.
  • If the arrangement or deed fails, you may risk bankruptcy.
  • Homeowners may be asked to release equity from their property. Re-mortgaging may attract higher interest rates or, if no re-mortgage is available, an Individual Voluntary Arrangement may be extended for 12 months.
  • There are restrictions on the expenditure of a person who enters into an Individual Voluntary Arrangement.
  • Only unsecured debts included within the Individual Voluntary Arrangement or protected trust deed may be discharged at the end of the period and unsecured debts not included remain outstanding.
  • Debt write off amount of each customer is subject to creditor approval (creditors can choose not to approve your IVA) and dependent on the financial circumstances of each individual


What if my personal circumstances change during an IVA?

If your circumstances change, whether that be for better or for worse, you must tell your supervisor. Your supervisor will then review your situation.

What are the fees and costs of an IVA?

In helping you to with an IVA, your Insolvency Practitioner (IP) will act as Nominee and is entitled to draw a Nominee’s fee for the work they do. Although this fee will be agreed with you prior to sending your IVA proposal to your creditors, it’s ultimately subject to approval by your creditors when they consider your IVA proposal. The fee is usually fixed and paid from realisations (the money you pay) in your IVA. In the event your IVA is not approved by your creditors, then at the discretion of your Nominee, this fee is written off.

How does an IVA affect my credit rating?

An Individual Voluntary Arrangement (IVA) will remain on your credit file for a period of six years; following the six years, it will drop from your credit report.

What debts are excluded from an IVA?

Debts excluded from an IVA include, but aren’t limited to, the following:

  • Child Maintenance arrears.
  • Mortgage and mortgage arrears.
  • Secured loans.
  • Car finance – while you still own the vehicle.
  • Court fines.
  • Student loans.

What happens to my creditors?

Any of your creditors, whose debts are to be included in the IVA will have to cease contact and collection activity.

Can I cancel my IVA?

Yes, you can cancel the IVA, however creditors may then commence alternative recovery action such as bankruptcy. An IVA is a legally binding agreement. Once it’s set up it cannot be cancelled simply because you’ve changed your mind. However, if your circumstances change and you can no longer afford the repayments then your IVA may be terminated.

Why do you need my bank statements?

This is so we can check your outgoings and demonstrate to your creditors that what is being presented is factual.

My wages have increased, does this mean my payments will go up?

We assess your income and expenditure as a whole, so if your outgoings have increased too it may mean that your payments don’t increase.

Who do we work with?

All of the Insolvency Practitioners that we work with are Authorised to Act as Insolvency Practitioners, in the UK, by the Insolvency Practitioners Association.

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