We guide you through every stage of the IVA process
Setting up an IVA involves budgets, documents, a formal proposal and a creditor vote. IndividualVoluntaryArrangements.net makes that process easier to follow. From your first call, we explain each step in plain English, tell you which documents you'll need and make sure you know what's expected of you before anything is agreed.
Most people want to know how long it will take, what they'll pay and when the letters and calls from creditors will stop. Those are the questions we answer first.
Your first steps with us
- A free, no-obligation conversation about your debts
- A checklist of the paperwork needed, such as payslips and bank statements
- A clear timeline from enquiry to approval, which usually takes four to eight weeks
Setting up an IVA usually takes around four to eight weeks. After that, you make monthly payments for the agreed term, typically five years, with a review each year.
The IVA process step by step
Initial conversation and fact-find
You talk through your debts, income, outgoings, assets and household. This is free and there is no obligation. You'll be asked for documents such as payslips, bank statements and recent creditor letters.
Advice on your options
You should be told about all the debt solutions available to you, including free and informal options. An IVA should only be recommended if it suits your circumstances.
Budget and proposal
A licensed Insolvency Practitioner (acting as your nominee) prepares your IVA proposal. It sets out your budget, monthly contribution, term, how any equity or assets will be dealt with, and the fees.
Creditors vote
The proposal is sent to your creditors, who vote through a decision procedure. Creditors may suggest modifications, such as a slightly higher payment. If at least 75% by value of those voting agree, the IVA is approved.
Monthly payments begin
Your Insolvency Practitioner becomes the supervisor of your IVA. You make one monthly payment to them, and they distribute the money to creditors after fees.
Annual reviews
Each year you'll provide updated details of your income and spending. If your income increases, your payment may rise; if your circumstances get worse, your payment may be reduced.
Completion
Once you've made all the payments and met the terms, you receive a completion certificate. The remaining balance of the debts included is written off, and you're removed from the Insolvency Register three months later.
A typical IVA timeline
| Stage | Typical timing |
|---|---|
| Enquiry and fact-find | 1 to 2 weeks (depends on how quickly documents are provided) |
| Proposal sent to creditors | Usually within a few weeks of the fact-find |
| Creditor decision | At least 14 days after the proposal is sent |
| Monthly payments | Usually 60 months |
| Equity review (homeowners) | Around six months before the end of the IVA |
| Completion and write-off | After all payments and terms are met |
What happens while your IVA is being set up?
Creditors can still contact you until the IVA is approved. Many Insolvency Practitioners will write to your creditors to let them know a proposal is being prepared, and most will hold off on action while the vote takes place. In rare cases where a creditor is threatening legal action, the IP can apply to court for an interim order, which temporarily stops creditors taking action.
If you live in England or Wales, you may also be eligible for the Breathing Space scheme, which gives you up to 60 days' legal protection while you get advice.
Your responsibilities during an IVA
- Make your monthly payments in full and on time.
- Tell your supervisor about any change in your circumstances, such as a new job, a pay rise, a change in household or a windfall.
- Don't take on new credit over £500 without your supervisor's permission.
- Provide information for your annual reviews when asked.
- If you're a homeowner, co-operate with any equity release review near the end of the IVA.
What about windfalls?
If you receive a lump sum during your IVA, such as an inheritance, a lottery win, a large bonus or compensation, you'll normally need to pay all or part of it into the IVA. This can sometimes mean your IVA finishes early. Your proposal will explain exactly how windfalls are handled.
If things change, speak up early. If you lose your job or your income drops, contact your supervisor straight away. An IVA can often be varied, or payments paused for a short time, to help you through. See what happens if an IVA fails.
How long until creditors stop contacting me?
Legal protection starts once your IVA is approved by creditors, which usually happens a few weeks after your first conversation. Before that, creditors can still contact you. In practice, many hold off once they know a proposal is being prepared, and the Insolvency Practitioner handling your case will usually let them know.
If you're under immediate pressure, for example from enforcement agents or court action, tell us straight away when you get in touch. People in England and Wales may be able to use the Breathing Space scheme, which gives up to 60 days' protection while a longer-term solution is put in place.
How to prepare for your first call with us
The quickest IVAs are the ones where the paperwork is ready. You don't need everything for your first conversation, but gathering it early can save weeks later on.
- Your last three months' payslips, or recent accounts if you're self-employed.
- Your last three months' bank statements for every account.
- Recent statements or letters from each creditor.
- Your latest mortgage statement or tenancy agreement.
- Details of any benefits, pensions or child maintenance.
If you can't find something, don't let it stop you getting in touch. We'll explain what's needed and where to find it.
Start the process today
The first step is a conversation. Fill in the form at the top of this page, choose a time that suits you, and we'll contact you to talk through your situation and explain what the process would look like for you. There's no cost and no obligation.