Take control of your debt with an Individual Voluntary Arrangement
An IVA is a legally binding agreement that lets you repay what you can afford over a fixed period, usually five years. At the end, eligible debt you can't repay is written off. Find out whether it's the right option for you.
- One affordable monthly payment based on what you can realistically afford
- Interest and charges frozen and creditor contact stopped once approved
- Remaining unsecured debt written off when your IVA completes
Check if an IVA could help
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A clear, structured route out of problem debt
An Individual Voluntary Arrangement is a formal insolvency solution set up by a licensed Insolvency Practitioner. Here is what it is designed to do for you.
Freeze interest & charges
Once your IVA is approved, interest and charges on the debts included are frozen, so your balance stops growing.
One affordable payment
Replace multiple creditors with a single monthly payment worked out from a realistic budget.
Legal protection
Creditors bound by the IVA can't take further legal action or chase you for the debts included.
Write off the rest
When the IVA completes successfully, the remaining balance of the included debts is written off.
IVAs work well for some people, but not everyone
An IVA is a serious commitment, so it is important to weigh it against the alternatives. As a guide, an IVA is usually worth considering if:
- You owe around £7,000 to £10,000 or more in unsecured debt
- You owe money to two or more creditors
- You have a regular income and some money left after essential bills
- You live in England, Wales or Northern Ireland
- You can't repay your debts in full within a reasonable time
If your debts are smaller, or you could repay them in full, an informal option like a Debt Management Plan may be better. If you have very little spare income, a Debt Relief Order may suit you.
How an IVA might look on £25,000 of debt
Based on a £180 monthly contribution for 60 months. Figures are rounded and for illustration only.
Insolvency Practitioner fees are paid from your contributions, so creditors receive less than the amount paid in. Your actual payment, term and outcome depend on your circumstances and your creditors' agreement. Not a guarantee.
From first enquiry to debt-free, step by step
Most IVAs follow the same four stages. Your Insolvency Practitioner handles the paperwork and communication with creditors.
Free enquiry
Tell us about your debts, income and outgoings. There is no cost and no obligation to go ahead.
Advice & proposal
If an IVA suits you, an Insolvency Practitioner prepares a proposal setting out what you can afford to pay.
Creditors vote
Your creditors vote on the proposal. If 75% (by value) of those voting agree, it becomes binding on all of them.
Pay & complete
Make your monthly payments, usually for five years. When the IVA ends, the remaining included debt is written off.
How an IVA compares with other debt solutions
Good advice always looks at every option. Here is a quick side-by-side of the four most common solutions in England, Wales and Northern Ireland.
| IVA | Debt Management Plan | Debt Relief Order | Bankruptcy | |
|---|---|---|---|---|
| Typical length | 5 years (6 if equity can't be released) | Until debts are repaid | 12 months | Usually 12 months; payments can last 3 years |
| Legally binding | Yes | No | Yes | Yes |
| Interest frozen | Yes | Requested, not guaranteed | Yes | Yes |
| Debt written off | Remaining balance at the end | No | Yes, after 12 months | Most debts, on discharge |
| Cost | Fees taken from your payments | Free providers available | No fee | £680 application fee |
| Homeowners | Usually keep your home; equity may need releasing | Home not directly affected | Not usually available | Home is at risk |
Debt solutions differ across the UK
England, Wales & Northern Ireland
Individual Voluntary Arrangements are available to residents of England, Wales and Northern Ireland, alongside DMPs, DROs and bankruptcy.
What is an IVA?Scotland
IVAs aren't available in Scotland. The closest equivalent is a Protected Trust Deed, with the Debt Arrangement Scheme and sequestration as alternatives.
About Protected Trust DeedsBased in Newcastle, helping across the North East
Enquiries are handled by phone and email, so you can get help wherever you live in the region. Our local guides cover the details that matter in your area.
Everything you need to know before you decide
Clear guides that explain how IVAs work, including the downsides.
What is an IVA?
The essentials: how an IVA works, who it's for and what it means for you.
Read guide
IVA costs & fees
How Insolvency Practitioners are paid and why you shouldn't pay anything upfront.
Read guide
Pros & cons of an IVA
The advantages and disadvantages, set out before you commit.
Read guide
IVAs and your home
What happens to your home, equity and mortgage, whether you own or rent.
Read guide
IVAs and your credit rating
How long an IVA stays on your credit file and how to rebuild afterwards.
Read guide
Which debts can be included?
The debts an IVA can and can't cover, from credit cards to council tax.
Read guideCommon questions about IVAs
How long does an IVA last?
Most IVAs last five years (60 monthly payments). If you are a homeowner and can't release equity from your property towards the end of the IVA, it is usually extended by up to 12 months.
How much debt do I need for an IVA?
There is no legal minimum, but IVAs are usually considered for unsecured debts of around £7,000 to £10,000 or more owed to two or more creditors. For smaller debts, an informal arrangement is often more suitable.
Will an IVA affect my credit rating?
Yes. An IVA is recorded on your credit file for six years from the date it starts, and you are listed on the public Insolvency Register while it is active. This will make borrowing harder during that time.
Do I have to pay fees upfront?
No. Insolvency Practitioner fees for an IVA are normally taken from your monthly contributions, not charged upfront. Your proposal must set out the fees clearly before creditors vote.
Will I lose my home?
An IVA is often used by homeowners to protect their home. You will usually be asked to try to release some equity towards the end of the IVA if there is enough. If you can't, the IVA is normally extended by up to 12 months instead.
Is it free to enquire?
Yes. Sending an enquiry is free and there is no obligation. Free, impartial debt advice is also available from services such as MoneyHelper.
Not sure which debt solution is right for you?
Tell us a little about your situation and we will get in touch to talk through your options, including whether an IVA is likely to be suitable.