Struggling With Debt?

An IVA Could Help you

Take Back Control

Reduce unaffordable debt into one manageable monthly payment

60

payments typically

5

year term typically

1

monthly payment

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a potential solution for individuals in England, Wales and Northern Ireland grappling with unaffordable debt. This legally binding agreement offers a structured path to financial recovery by consolidating debts into manageable payments.



Summary

  • An IVA is a UK legal framework for consolidating unmanageable debt into manageable payments
  • Eligibility includes having over £6,000 in unsecured debt, multiple creditors, a stable income, and living in England or Wales
  • They typically span 5-6 years, post which the remaining debt may be cleared
  • The process involves debt consultation, drafting a proposal with an Insolvency Practitioner, gaining creditor consent, and adhering to scheduled payments
  • IVAs can fail if you fail to make payments as originally agreed
  • If your arrangement fails early, you may not receive any debt reduction, as all repayments may have gone towards the fees of the arrangement


Advantages of an IVA

✅ One affordable monthly payment

✅ Included creditors can no longer chase you directly

✅ Interest and charges are frozen

✅ Legal action stopped

✅ Legally protects your home

✅ Remaining included debt may be written off at the end of the IVA

Disdvantages of an IVA

❌ An IVA will affect your credit file for 6 years

❌ Your details will appear on the Individual Insolvency Register

❌ You must stick to the agreed payments

❌ Missing payments could cause the IVA to fail

❌ There is no guarantee your creditors will agree to the IVA

❌ An IVA only deals with unsecured debts

Not sure if an IVA is right for you?

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What People Usually Want To Know

  • Will I lose my home?

    An IVA was specifically designed to help people become debt free and legally protect their home.

  • Will bailiffs stop?

    Once an IVA is approved creditors are legally bound by the terms of the IVA, which means they can no longer pursue the debt outside of the IVA

  • Will my credit score be affected?

    An IVA will remain on your credit file for 6 years

  • Can I keep my car?

    Usually yes, if it’s needed for work or daily life.

  • Will my employer know?

    Usually no, unless your profession has insolvency restrictions.

Alternatives to an IVA

Debt Relief Order

A free debt solution that can freeze interest and write off qualifying debts.

Debt Management Plan

Make one manageable monthly payment while reducing pressure from creditors and regaining

Bankruptcy

A formal debt solution that can help clear unaffordable debts and give you a fresh financial start.

Breathing Space

Receive temporary protection from interest, fees, and creditor action while you explore your debt options.