Individual Voluntary Arrangements (IVA)

Apply for an IVA to stop your creditors taking action against you and write off unaffordable unsecured debt

  • ico You could lower your monthly outgoings
  • ico Write off up to 90% of debt
  • ico It’s free to check if your qualify
  • ico Stop debt letters and phone calls
  • ico Freeze interest and charges

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Ron H reduced his monthly outgoings by a huge £894/month with an IVA


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  • ico You could lower your monthly outgoings
  • ico Write off up to 90% of debt
  • ico It’s free to check if your qualify
  • ico Stop debt letters and phone calls
  • ico Freeze interest and charges

    How an IVA could help get you out of debt

    Before and After IVA checkSide by side IVA comparison

    Ask your advisor for a personalised IVA example to see how much unsecured debt you could write off and calculate a reduced repayment

    What can an IVA do for me?

    Over 50,000 people chose an IVA last year

    A single, lower payment

    A single, lower payment

    We’ll ensure you only pay back what you can honestly afford, starting from £90/month

    No more calls or threatening letters.<br>Full stop.

    No more calls or threatening letters.
    Full stop.

    Never have to deal with scary phone calls or threatening letters from creditors demanding payment

    Stop worrying about making ends meet

    Stop worrying about making ends meet

    No worrying about bills, payday loans, credit cards or debt collectors

    Check if you qualify

    Here's what an IVA has done for clients...

    <b>Ron H</b>

    Ron H

    “Without doubt the most professional Practitioners bar none. All conversations by email & telephone with both Marian & Zainab where extremely friendly & knowledgeable and not only put me at ease but gave me a better understanding of an IVA”Save on monthly payments with IVA

    82% Reduction in monthly payment

    <b>Dulcie P</b>

    Dulcie P

    “Really quick to get IVA in place, Polite and interested in my problems and non-judgemental. Anyone who deals with this company will be able to stop worrying about creditors and will possibly be relieved of a lot of undue stress”IVA comparison savings with IVA

    79% Reduction in monthly payment

    <b>Ben T</b>

    Ben T

    “When I first looked at this company the first person to call me (Steve) was very friendly and extremely helpful with understanding my situation. I didn’t realise I was in so much debt but now I am looking forward to a better financial future”Before IVA per month and after IVA per month

    73% Reduction in monthly payment

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    Frequently Asked Questions About IVAs

    What is an IVA?

    If you are experiencing difficulty repaying your debts, an IVA can act as a formal agreement that will enable you to create an affordable repayment plan (Write off debt loopholes).

    They are only available in England and Wales and not in Scotland, where a protected trust deed is used as an alternative. An IVA can only be secured through an insolvency practitioner (IP) and as such are legally binding agreements that must be adhered to once set up.

    Rather than repaying your debts to your creditors, the IP receives the funds every month and is in charge of dividing it between the various creditors.

    Read more…

    How does an IVA work?

    An IVA application can be made if you are in a position to repay some of your debts but not the full amount. Most IVA plans are spread over 60 to 72 months, so part of the application process involves showing proof that you have regular long-term income. A lump sum IVA could also be an option if you can afford to pay a large amount of money in one go (how to write off debt).

    An IP is either an accountant or lawyer and they will charge fees for managing your debts. These fees will vary depending on the amount you need to repay (How to write off loan debts). Debt management companies can also help you with an IVA, but it is advisable that before committing you make sure you are aware of their fees.

    The IP will work with you to put together a proposal to submit to your creditors. This will outline your current income and regular outgoings and suggest the amount of money you can pay to each creditor.

    Whether or not your creditors agree to an IVA depends on your circumstances and they are not legally obliged to accept your proposal. If the repayments do not cover the full amount of debt you owe at the end of IVA, the remainder of your debts will be wiped out and you will have nothing else to pay.

    It is important to note that if you own money to people or companies that reside in the EU the IVA may not cover your debts. In this sort of scenario it is a good idea to seek legal advice before taking out an IVA.

    Read more…

    What debts can an IVA be used for?

    An IVA can be used to pay off debts such as:

    • Personal loans
    • Catalogue debts
    • Council Tax arrears
    • Overdrafts
    • Gas/water/electric arrears
    • Credit and store cards
    • Debts to family and friends
    • Other bills such as solicitor’s costs, vet bills etc.

    Read more about what happens when a debt is written off.

    Can I include secured loans, mortgage and rent arrears in an IVA?

    You can apply to include secured loans, mortgage and rent arrears in your IVA, although it is at your creditors discretion whether or not they agree and it is often the case that they do not (how to write off unaffordable debts).

    If you are unsure about what debts you can include in your IVA the IP should be able to advise you.

    Can you really get debt written off?

    How much debt can I include in an IVA?

    There is no limit on the amount of debt you include in an IVA, although if your debts are less than £10,000 it might be advisable to look at other debt management solutions as IVA fees are typically quite expensive.

    Read more about does an IVA write off debts.

    How much does an IVA cost?

    The fees payable to an IP will vary depending on the amount of money you owe and the amount of work they have to carry out on your behalf. On average it could cost around £5,000 in total, although this can vary so it’s important to have a clear indication of the IP’s fees before you use them.

    IVA calculator: How much will it cost you

    Some practitioners ask that that you pay them in full upfront before the IVA is set up. Others will take their fees from the debt repayments you provide every month before dividing the rest amongst your creditors.

    Read more…

    What do the IP fees cover?

    The fees charged by the practitioner are to cover specific duties they will carry out whilst managing your IVA:

    • Adviser: This is to offer initial advice as to whether or not an IVA is the right debt solution for you.
    • Nominee: The IP will help you draft an IVA proposal, submit this to court and arrange a meeting with your creditors to finalise an agreement.
    • Supervisor: If an agreement is reached the IP will supervise your IVA for its full duration. This ensures creditors are paid as agreed on time and will communicate any changes to either party.
    Are there any other fees involved in IVAs?

    You may have to pay a fee for the initial meeting with an insolvency practitioner, although some do offer this for free or at a reduced rate. In instances where the court has referred you to an IP for an IVA due to bankruptcy, a fee of £335 is payable to the practitioner. This is taken out of the deposit paid to the court as part of your bankruptcy petition.

    Is an IVA right for me?

    An IVA is not the right fit for everyone (Should I get an IVA?), but if the following apply to your circumstances it could prove useful:

    • Your debts are more than £6,000 – it is advisable to look at other debt management solutions if you owe less as IP fees are usually high.
    • You owe money to at least 2 different creditors.
    • You would prefer not to deal directly with your creditors.
    • You are able to afford regular monthly IVA payments.

    Read more…

    Will I face any restrictions on an IVA?

    If you take out an IVA it will have an impact on your financial circumstances as it means:

    • Your credit rating will be affected for up to 6 years, starting from the start date of the agreement.
    • A budget will have to be agreed and followed for the full duration of the IVA.
    • An IVA can be extended to cover for any missed payments.
    • Some work contracts may state that having an IVA could affect your employment (How does an IVA affect employment). This usually applies to roles such as accountants and solicitors but make sure you check this before making an application.
    • An IVA could affect existing hire purchase agreements.
    • Details such as your name, address and date of birth will be included on the Individual Insolvency Register (IIR) which can be viewed for free by anyone.
    • You will not be able to take out new debts worth more than £500 whilst on an IVA.

    Read more about the disadvantages of an IVA

    Does having an IVA mean I have to sell my home?

    If you are a homeowner its value will be taken into account as part of the IVA (How to write off debt without an IVA). When you reach the final 6-12 months of the agreement you will have to get a valuation of the property to see the equity value it currently holds. If the equity is worth over £5,000 this will usually mean you have to re-mortgage to raise a lump sum that is then paid into the IVA, although you will not have to sell(How to write off debt without losing your house). The re-mortgage limit is set at a maximum of 85% of your property’s value.

    There may be circumstances where your home is not included in the IVA, although this is a decision made by the creditors.

    Read more about how an IVA affects your mortgage

    Do I have to sell my car?

    Depending on the value of the car you may be able to keep it. Your practitioner will arrange for a valuation to see what happens next. For vehicles with a high valuation, the IP and/or your creditors may ask you to sell it. If this happens you should be allowed to keep some of the money to buy a replacement.

    This also applies if you own more than one vehicle. If you cannot justify owning multiple vehicles you may be asked to sell so the money can be put into the IVA. If you are paying for a vehicle on a higher purchase agreement you should check with the company to see if having an IVA causes any issues.

    How does an IVA affect my credit rating?

    Once an IVA starts it will be entered onto your credit file and remain there for 6 years (How does an IVA affect your life). Even if you pay off all your debts before the agreed end date, it will be marked as complete on your credit file but will remain there for the full 6 years. For IVAs that run for longer than 6 years it will remain on the credit file until it ends (How to write off credit card debt). If the original agreement was broken then your creditors may add a default to your credit file, although this varies from case-to-case.

    Read more about the Advantages of an IVA

    Will an IVA effect my bank account, savings or pensions?

    An IVA could affect your bank account, savings and pension in different ways:

    Bank accounts

    If your bank account is linked to any of the debts you owe you may need to switch to another one. Called ‘right to offset’, it means the bank may be able to take money from your any of your accounts to pay money you owe to another company (How do I get my debts written off). For example, if you have a credit card or loan with the same bank, or if the company you owe money to is owned by the bank, this means your accounts are linked. It is advisable to make the account switch before the IVA is set up. Your IP will be able to advise.


    Savings will normally have to be declared and included in an IVA. Depending on the amount of money you have, this will either be payable through a lump sum or included in your monthly repayment plan.

    State pensions

    State pensions are counted as income and used to help calculate how much you can afford to repay each month (Government scheme to write off debt).

    Private pensions

    A private pension will also be included when calculating how much you can afford to repay. Lump sums may have to be paid into the IVA, or if you are still paying into the pension your creditors may ask you to use the money to repay them. This is not set in stone and can vary, so should be discussed with your practitioner to see if they can negotiate a compromise.

    (Find out: Best way to write off debts)

    Anyone aged over 55 with a defined contribution pension who hasn’t taken money from the pension pot is unlikely to be asked to put the funds into their IVA. If money is withdrawn during the term of the IVA agreement this could be counted as income and used to pay off your debts. You also have the option to use a lump sum from your pension to pay off your IVA, although you should seek financial advice before doing this.

    Read more about: How to write off debt without affecting credit score

    How do I find an IVA?

    We’ve made it easy to connect with an IVA provider. Simply request your free eligibility check at the top of this page and we’ll introduce you to one of the UK’s leading and 5-star rated IVA debt advisory.

    How to set-up an IVA

    If you decide to go for an IVA and have settled on a practitioner they also have a responsibility to ensure you have read the “Is a Voluntary Arrangement for me?” leaflet. This can be found on the Association of Business Recovery Professionals website.

    The steps to follow to set up an IVA are:

    Make a court application

    Your practitioner may feel it’s helpful to apply to the court for an interim order. This will prevent your creditors from taking any action during the set-up phase of the IVA. An interim order stops creditors from taking out any court orders against you (Can you really get debt written off?). However, they are not common and instead your IP may focus on getting any court action raised against you adjourned.

    Review your finances 

    You will have to review your finances in detail with the IP to assess your income level and any savings and assets in your possession (which can include vehicles and property). Some assets may be excluded if they are deemed as essential, such as a car you use for work purposes. The financial review will also look at your current financial commitments and ultimately put together a repayment plan that you can afford long-term (How to write off debt).

    Write a proposal 

    Once you have drawn up a repayment plan you need to write a proposal that will then be submitted to the court and your creditors. This will state how much you intend to repay each month and for how many years it will last for (anywhere up to 6 years). Your IP also has to submit a report to the court stating whether or not they believe the proposal will work.

    The proposal will be chosen based on your individual circumstances and the likelihood of your creditors accepting it. However, if you want to include certain terms despite your IP advising otherwise they may recommend that the court reject the IVA as it will not stand much chance of success.

    Creditors make their decision

    Once your creditors have your proposal your practitioner will ask them to attend a creditor’s meeting where a vote is made on your proposal. You are also able to attend the meeting and have the opportunity to state your own case. This can be done either in person or via a video link if more convenient.

    Creditors may request some amendments are made to your proposal before agreeing, although whether you accept or not is down to you.

    More than 75% (in terms of debt value) of the creditors have to vote in favour of your proposal before it can be accepted. This is known as the ‘requisite majority’. For example, if you owe 30% of the total debt to one creditor, their single vote carries the same percentage value.

    If the vote is successful in your favour it is then reported to the court and made official. Even for the creditors that voted against your proposal, the terms are legally binding.

    An appeal can be made by the creditors if they believe their interests were not given fair consideration, or if they believe an incorrect procedure was used at the meeting. The appeal must be submitted within 28 days of your proposal being accepted. You also have the right to lodge an appeal based on these grounds.

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