This website contains the basic IVA details that you may need to know before you choose what debt solution if right for you. Please see our IVA FAQs section or contact one of our IVA advisors directly for IVA information – 0800 0481 777.

What is an IVA?

IVA is short for Individual Voluntary Arrangement, and was introduced as part of the Insolvency Act of 1986. An IVA is a legally binding agreement between the debtor and their unsecured creditors. In an IVA, the debtor agrees to pay one reduced monthly sum for a typical 60 month period.

As part of the agreement, any unaffordable debt will be written off at the end of the IVA agreement. Once an IVA has been completed, the debtor will be free of any unsecured debt.

Can I Apply for an IVA?

An IVA is not suitable for everyone, and it is important that you seek professional advice to see if you qualify.

Speak with one of our IVA advisors on 0800 0481 777, they will go through your personal circumstances and help you to find a solution to your debt problems, whether this be through an IVA or a debts management plan.

An IVA is a part of Government legislation and is not something that you can do yourself. This means that the costs of setting up an IVA are rather expensive. Therefore you need to have debts of at least £12,000 to be considered and be able to afford monthly payments of at least £200.

Can all my Debts be included in an IVA?

You can only use an IVA for unsecured debts, such as credit cards, unsecured loans, store cards and bank overdrafts.

An IVA will not cover any debts which are secured against an asset, such as mortgage, remortgage or secured loan. There are other debts which can also not be included such as certain student loans or debts which arose from fraud.

To see if your debt can be included in an IVA, speak with our advisors on 0800 0481 777.

Will I lose my home if I agree to an IVA?

One of the greatest advantages of an IVA is that you can protect your assets. This means that you should not have to sell your home, unlike bankruptcy where your home and assets will be split between your creditors.

You may be asked to release some of the equity in your home to pay back your creditors.

Will my Creditors agree to an IVA?

For the IVA to be agreed, 75% of your creditors (in terms of debt value) must approve it. This overall IVA process typically takes 4-6 weeks as it is very complex. However, you won’t have to worry about a thing as we will complete the IVA proposal on your behalf. We will ask for your co-operation in giving us further details of your personal and financial circumstances and signing any paperwork.

Once the IVA has been agreed by the majority of your unsecured creditors, none of them are allowed to take any further action against you and your debts as long as you make the agreed monthly IVA payments. They will not be allowed to contact you.

Can I finish my IVA early?

In most cases, IVAs run for the full 60 month period, but if your personal circumstances change then you may be able to finish the IVA early.

You must contact your Insolvency Practitioner (IP) if your financial circumstances change over the IVA term, such as if you receive a windfall or inheritance. Your IP will approach your creditors and try to negotiate a settlement. However, the process for this is dependant on your personal circumstances.

For further information about how an IVA could help you with your debt problems and to see if you are eligible for an IVA, call the Debts Management team on 0800 0481 777.

• Type of Agreement.
  An IVA is a legally binding agreement between the debtor and the creditor. Once an IVA has been approved then the creditor cannot change their mind and pull out of the plan.
  Whereas a debt management plan is an informal agreement and creditors do not have to accept your offer.
• Debt written off?
  Only an IVA can write debt off, and it is not possible to do so with a debts management plan.
• Amount of debt.
  An IVA can only be arranged if you have over £15,000 worth of debt. If you have less than this amount it is likely that you will only get accepted for a debt management plan
• Flexibility.
  A debt management plan is the most flexible of the two, and your payments can be changed in accordance to your personal circumstances. But an IVA is a legally binding process and you must commit to making that payment level each month.

Terms & Conditions Apply. An IVA is for unsecured debts only, and should only be considered in extreme circumstances as failure to adhere to the IVA agreement could result in bankruptcy. Debt write off only applies when the IVA is agreed by your creditors and you have completed the, typically, 60 month term. Once your IVA commences, your monthly contribution is fixed and there are no additional fees on top. Our fees, paid by your creditors, are taken out of your monthly contributions to your IVA and will be notified to you in advance. Some homeowners may be required to remortgage.