What Is an Individual Voluntary Arrangement?
An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors to repay your debts over a fixed period - usually five to six years. It is one of the most popular debt solutions in England and Wales.
Unlike bankruptcy, an IVA allows you to retain control of your assets (including your home in most cases) while making a single, affordable monthly payment. At the end of the arrangement, any remaining unsecured debt included in the IVA is legally written off.
IVAs are supervised by a licensed Insolvency Practitioner (IP) who acts as a nominee and then supervisor of the arrangement. The IP negotiates with your creditors on your behalf, meaning you don't have to deal with them directly.
How Does an IVA Work?
1. Free Assessment
We review your debts, income and expenditure to see if an IVA is right for you.
2. Proposal
An Insolvency Practitioner prepares a formal proposal to send to your creditors.
3. Creditor Vote
Your creditors vote on the proposal. If 75% (by debt value) agree, it becomes binding on all.
4. Monthly Payments
You make one affordable monthly payment for typically 5-6 years, then remaining debt is written off.
Types of Debt Included
An IVA can cover most unsecured debts, including:
- Credit cards
- Personal loans
- Store cards
- Overdrafts
- Catalogue debts
- Payday loans
- HMRC debts (in some cases)