Individual Voluntary Arrangement (IVA)
(England, Wales and
N Ireland Only)
 What is an IVA?
An IVA is legally binding agreement between a debtor and their creditors. The debtor agrees to pay back as much as they can afford for a fixed period of time – normally 6 years, after which time any outstanding debts are written off. It is often seen as an alternative to bankruptcy.
Do I qualify for an IVA?
Most people do. If you live in England, Wales or Northern Ireland and you have debts of over £15,000, you can apply for an IVA. If you live in Scotland see Trust Deeds and Sequestration.
How does it work?
To apply for an IVA, you will need the help of an Insolvency Practitioner – we will help you with this. Once you have appointed an Insolvency Practitioner (IP) to act on your behalf, they will first of all make sure that you can afford it and help you put forward a proposal to your creditors. The IP will make an application to court for an Interim Order. This effectively stops all debt collection against you. The IP then calls a meeting of all your creditors and makes the proposal to them. Providing that enough of your creditors agree (75%), the proposal is accepted and the agreement becomes legally binding on all parties. You then simply make the agreed proposal over the agreed amount of time and your debt problem is sorted. 
What are the advantages?
- you make one affordable monthly payment
- you only pay back a proportion of your debts
- creditors agree to write off up to 75% of your debts
- your creditors are legally bound by its terms
- no more threatening letters
- no more phone calls
- no wages arrestments
- no bailiffs
- you can continue to run a business
What are the disadvantages?
- you may not be allowed to take on any more credit
- your credit file will be affected
- if you fail to keep up the agreement, your home may be at risk
What about my home?
- If you own your own home, this may be included as part of the agreement. As long as you make the agreed payments, no action can be taken against your property.
- If you have a substantial amount of equity in your home, you may be expected to realize some of it for the benefits of your creditors.
What about my credit rating?
- The chances are
that you have already missed payments to
your creditors and this will already be
on your file. Signing an IVA may also effect
your credit rating.
How do I apply?
Simple, complete the forms and send them to us. We will review the information and get back to you the same day. Alternatively e-mail us on and quote “IVAs”.
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