Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) brings your unsecured debts into one affordable monthly payment, usually over five or six years. After that, any remaining debt is written off.
Some debt solutions have fees. We’ll always explain any costs upfront with no pressure to go ahead.
You can find free debt advice and options to manage your debts from MoneyHelper. You can visit their website at moneyhelper.org.uk to find out more.
What is an IVA?
An IVA helps you take control of unsecured debts by making one affordable monthly payment. Once the plan is approved creditors stop interest, charges and legal action.
An IVA usually lasts five or six years with any remaining debt written off at the end.
A licensed insolvency practitioner sets it up and deals with your creditors on your behalf.
How it works
Here’s what the process usually looks like:
We listen
We'll ask about your income, spending, debts and any assets you own to understand your financial situation.
We advise
We’ll discuss your options and help you decide if an IVA is what you need.
We help you apply
If it’s right for you, we’ll submit a proposal to your creditors.
Your IVA starts
If your IVA is approved, you’ll make one monthly payment usually for five or six years. Any outstanding debt will be written off at the end of the arrangement.
Benefits and considerations
Here’s an overview of the key benefits and things to be aware of:
Affordable repayments
You make one monthly payment based on what you can realistically afford.
Equity release or extended time
Homeowners may need to release equity. If this isn’t possible, your IVA may be extended for 12 months.
Debt write-off
Any unsecured debt left at the end of the arrangement will be written off.
IVA fees
There are fees for an IVA.
Room to breathe
We make sure your monthly payment leaves enough for food, rent, bills and other essentials.
Credit rating impact
Your credit rating will be affected which could impact future borrowing.
Interest and legal action suspended
Creditors won’t be able to take any further legal action or add interest and charges.
Insolvency register
Your details will be added to the Individual Insolvency Register.
FAQs
An IVA might be suitable if:
- you owe money to more than one creditor
- you have a regular income
- you can afford to make a monthly payment to your debt
- you live in England, Wales or Northern Ireland
You can include most unsecured debt like credit cards, loans, overdrafts, and buy now pay later agreements in an IVA.
There are always fees for an IVA but the amount charged will vary depending on who proposes it. Your fees will be taken out of your monthly payment.
Yes. It will show on your credit report for six years from the date it starts, which may affect your ability to get credit during and after the IVA.
Your monthly payment is based on what you can afford after covering essential living costs. Your creditors will need to agree this is reasonable.
Your IVA will be reviewed regularly. If your income or spending changes, your monthly payment may be adjusted to keep it affordable.
Start with a simple conversation
Call us on 0161 804 2923 for confidential advice on your options.
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