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What Is An IVA?

An Individual Voluntary Arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back all or part of your debts over a period of time at an affordable rate.

An IVA is set up and managed by an Insolvency Practitioner (IP). In an IVA, a single monthly payment and is agreed with your current financial situation taken into consideration to suit your circumstances – this payment is then divided among the people you owe money to.

During your plan all interest and fees associated with your debts are frozen. At the end of the IVA the remaining debts are written off.

Will An Iva Work For Me?

Which Debts Can be Included in an IVA?

  • Catalogue debt
  • Personal loans
  • Overdrafts
  • Credit cards
  • Gas and electric arrears
  • Council-tax arrears
  • Water arrears
  • Payday loans
  • Store cards
  • Income tax and National Insurance arrears
  • Tax credit or benefit overpayment determined before the IVA
  • Debt to family and friends
  • Hire purchase and mortgage shortfalls after the sale of the asset
  • Rent arrears when you have left the property

Which Debts Can’t be Included in an IVA?

  • Mortgages and secured loans
  • Hire-purchase and agreements
  • Court fines
  • TV-license arrears
  • Student loans
  • Child-support arrears
  • Social-fund loans
  • Rent arrears (if still living in the property)
Check If You Qualify

Considering An IVA?

If you’re considering an IVA, it’s always worth taking into account the pros and cons of this kind of debt-management solution. Our friendly, non-judgemental guides can help you make the right decision for you.

What Are the Advantages of an IVA?

  • An IVA will stop further interest rates and charges from being added to your debt. The number of monthly repayments is fixed. Usually at 60 or 72 payments.
  • Your IVA will be supervised by a licensed Insolvency Practitioner.
  • An IVA is a legally binding contract, and all creditors must adhere to its terms.
  • It awards you legal protection against any further creditor action.
  • Once your IVA is completed you will no longer have any outstanding debts with any of the creditors that were included in the IVA.

What Are the Disadvantages of an IVA?

  • The default registered at the start of your IVA will stay on your credit file for six years after approval, so your credit rating can be affected.
  • You may be required to release equity from your property.
  • Your IVA will be listed on the Individual Insolvency Register.
  • If your IVA fails, creditors can request the Supervisor to petition for your bankruptcy.
  • You need 75% of voting creditors to approve. We will negotiate with creditors on your behalf if they reject your proposals.
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