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IVA - Individual Voluntary Arrangement

An IVA or Individual Voluntary Arrangement is a popular solution for unaffordable unsecured debts over £5,000. Subject to creditor acceptance, An IVA can :

  • Write off a significant amount of debt.
  • Stop interest and charges.
  • Stop court action, including bankruptcy.

IVAs are designed to help people with unaffordable unsecured debts. It allows you to avoid bankruptcy and become debt free in 60 months by making payments you can afford.

If you owe at least £5,000, have at least 2 creditors with 3 or more lines of credit and can afford a minimum of £70/month towards your debts, you should consider applying for an IVA.

Key Benefits Of An IVA

An IVA Could Help You Get Out Of Debt

You're Not Alone.
In England and Wales approx. 150,000 people are current doing an IVA. Over 16,000 of those are with us. Apply for your IVA now.

  • An IVA Reduces Your Debts
    Typically, you'll repay just 30%-80% of your debts; this figure depends on personal circumstances and the monthly payments you can afford.
  • An IVA Stops Interest and Charges.
    Over the normal 60 month duration of the IVA, no more interest or charges is added to your debts. This alone can save you £1000's.
  • No More Creditor Letters and Phone Calls
    Creditors are not allowed to contact you about these debts once the IVA is in place and while payments are maintained.
  • An IVA Prevents Bankruptcy
    An IVA means you've reached an agreement with your creditors whereby they cannot bankrupt you while you maintain the agreed payments. Bankruptcy could mean losing some of your assets, including your home and car.

IVA Eligibility Checker

Get An On Screen Recommendation

Find out if you potentially qualify for an IVA, and if not why not. If you qualify, exactly how much you would need to pay back is displayed on screen.







*Tip, move the sliders with your mouse, or click to select a slider then move with your keyboard arrow keys. You can also enter digits into the boxes.

What Is an IVA?

An IVA is a legally binding agreement between consumers with unaffordable unsecured debts, and the companies to whom they own money - their creditors. It's you saying to them:-

"I can't afford to pay my debts in full and the interest is making things worse. If you stop all interest, and I pay what I can for 60 months - will you let me off the rest?"

Do I Qualify For An IVA?

Whether you qualify for an IVA depends on several factors; It boils down to how much you owe, what assets you have, what you can afford to pay into the IVA and the stability of your income to enable you to maintain payments.

In short, you need to owe at least £5,000 spread over 3 debts, and be able to pay at least £70/month into the IVA. You need to be technically insolvent, meaning you can't afford to pay your debts as they fall due; nor have you assets you could easily sell to raise money to clear these debts.

Applying For An IVA

The first step to get in contact with us. We'll discuss your debts and see how much you can realistically afford to pay back each month. Should an IVA be the most suitable solution, we can make a formal IVA Proposal to your creditors. 

While creditors are willing to forgive you some of your debts, you are expected to repay as much as you can reasonably afford. Therefore restrictions may be applied to your expenditure, but you won’t be expected to live in poverty.

If your IVA prosal is accepted by 75% of the creditors by value of debt - the IVA is approved. Your debts are frozen and no more interest or changes can be added. Upon the successful conclusion of the IVA, any debts remaining are written off. However, should the IVA fail and you are not able to make alternative arrangements with your credtiors, you may be made bankrupt.

Please note that in some case the IVA is not approved and that not all debts can be included - see debts we can help with for details of the type of debts which are excluded.

IVA and Home Ownership

If you have significant equity in your property, you are likely to be asked to make a contribution from that towards the end of the IVA by way of re-mortgage. This is subject to affordability; so you’re never required to pay more than you can realistically afford. Being an IVA holder will impact your credit rating and ability to get a re-mortgage. If you are unable to re-mortgage, the IVA may be extended by a further 12 months. See more about IVAs and homeowners.

Your Responsibilities

It is your responsibility to ensure that you continue to make payments to creditors that are not/cannot be included in your IVA.

If the IVA fails and you do not make alternative arrangements to pay your creditors, there is a risk of bankruptcy.

Failure to pay any taxes, fines, child support payments and other debts outside of your IVA could result in a loss of access to essential goods or services or repossession of, or eviction from, your home.

Credit Rating

During the IVA, you will normally not be allowed to borrow more money. The whole point of an IVA is to make possible the repayment of unaffordable debts, so the ability to borrow more should be furthermost from your mind when considering one. A record of your IVA will be retained by credit reference agencies for six years.

Important Considerations

Before entering into an IVA, you should be aware all the implications, your rights and the fees involved. Please see key information and fees.