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 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 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.



  • Approval of an IVA is not guaranteed, creditors may reject the proposal.
  • Credit File will be effected 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 money payments you make, which will be fully explained to you and outlaid fully in your IVA proposal.
  • You won’t be able to obtain credit during the solution term.
  • Homeowners may be asked to release equity from their property.


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 review your situation then.

What are the fees and costs of an IVA?

In helping you to with an IVA, your (IP) or insolvency practitioner will act as Nominee and he/she is entitled to draw a Nominee’s fee for the work they do. Although this fee will be agreed with you, it is 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.

The Nominee fee relates to the work carried out by the IP in assessing your financial circumstances and exploring all available options in determining that an IVA is a suitable solution for you. The Nominee drafts your proposal, prepares a Nominee’s report and convenes and holds a meeting of your creditors so that consideration can be given to your proposed IVA.

If approved, the IP then becomes Supervisor of your IVA. As Supervisor, their role is to monitor and collect your contributions, conduct periodic reviews of your income and expenditure. Your Supervisor may seek to vary or fail the arrangement if appropriate to do so, although ultimately, it is envisaged that the Supervisor will eventually conclude your IVA.

Supervisors fees will be calculated monthly, usually as a percentage of realisations (the money you pay). This is on the assumption that the arrangement runs full term, you cooperate fully, the arrangement does not have to be varied and the creditors do not increase the amount of supervision required in your original proposals. This will all be discussed with you.

In addition to fees, your insolvency practitioner will incur disbursements. These are costs and expenses incurred in the setting up and administering of your IVA. Examples of disbursements are Bond (case specific insurance), postage costs, registration of the IVA and software maintenance. Some disbursements are payable in priority to fees and once again are fully disclosed in your IVA proposal, agreed with your creditors and are drawn from the IVA.

It is likely that creditors will seek to set a maximum amount that can be drawn in respect of both fees and disbursements and again this will be discussed with you as part of the process.

How does an IVA affect my credit rating?

An 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 are not 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 is set up it cannot be cancelled simply because you have 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 do not increase.

Who do we work with?

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