Individual Voluntary Arrangement (IVA)

An IVA is a Government initiated procedure dating back to 1986. This legislation is suitable for those with more than £15,000 of unsecured debt and are in regular employment. It was introduced as a less severe alternative to bankruptcy.

What is an IVA?

An IVA allows you to make reduced repayments to your creditors (the companies that you owe money to) over 60 months, after which any remaining debt is written off.

Once your IVA has been approved, it is legally binding between you and your creditors. They will stop all interest and charges on your account and drop any legal action against you, including bankruptcy proceedings. 

An IVA can only be arranged by a licensed I.P (Insolvency Practitioner).

Contact Debts Management for IVA Advice: 

An IVA is a less severe alternative to bankruptcy, and no other debt solution can write off any amount of your debt. For more information and to see if you can be Debt Free in 60 months, call us free on 0808 131 9112.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)