Questions about your own situation? We can answer them
These FAQs cover the questions IndividualVoluntaryArrangements.net hears most often. Every situation is different, though, and the most useful answers are the ones that apply to you. Our free IVA check gives you the chance to ask about your own debts, home, job and income, and to get clear answers without any pressure to go ahead.
Send an enquiry using the form at the top of the page, choose a time that suits you and we'll be in touch.
Common reasons people contact us
- To find out if they qualify for an IVA
- To understand what an IVA would mean for their home
- To compare an IVA with other debt solutions
The basics
What is an IVA?
An Individual Voluntary Arrangement is a formal, legally binding agreement between you and your creditors to repay an affordable amount over a fixed period, usually five years. At the end, the remaining balance of the debts included is written off.
How long does an IVA last?
Most IVAs last five years. If you're a homeowner and can't release equity near the end, the IVA is usually extended by up to 12 months.
How much debt do I need for an IVA?
There's no legal minimum, but IVAs are generally considered for unsecured debts of around £7,000 to £10,000 or more owed to two or more creditors.
What is the minimum monthly payment?
There's no fixed minimum, but creditors generally expect a contribution of at least around £80 to £100 a month. Your payment is based on what you can afford after essential living costs.
Can I get an IVA in Scotland?
No. IVAs are available in England, Wales and Northern Ireland. In Scotland, the closest equivalent is a Protected Trust Deed.
Costs and payments
How much does an IVA cost?
Fees are paid to the Insolvency Practitioner and are normally taken from your monthly payments rather than charged upfront. The fees must be set out in your proposal before creditors vote.
Can my IVA payments change?
Yes. Your income and spending are reviewed each year. If your income increases, your payment may rise; if your circumstances get worse, your payment may be reduced.
Can I pay off my IVA early?
Yes, in some cases. If you come into money, or a friend or relative can help, you may be able to make a full and final settlement offer. Your supervisor will put it to your creditors.
What happens if I get a pay rise or bonus?
You must tell your supervisor. Usually, part of any significant increase in income is added to your monthly payment, and bonuses are typically paid into the IVA.
Your home, car and job
Will I lose my home in an IVA?
It's very unlikely. You'll usually be asked to try to release equity towards the end of the IVA. If you can't remortgage, the IVA is normally extended by up to 12 months instead of your home being sold.
Can I keep my car?
Usually, yes, if you need it and it isn't of high value. If the car is worth a lot, you may be asked to sell it and buy something cheaper, with the difference going into the IVA.
Will my employer find out?
Your employer isn't normally contacted. However, some contracts require you to declare an IVA, and certain jobs in areas like finance, law, accountancy, policing and the armed forces may have restrictions. Check your contract or speak to HR in confidence.
Can I rent a home during an IVA?
Yes. Your rent is treated as an essential cost. Some landlords run credit checks, so moving to a new rental may need a little more planning.
Credit and afterwards
How long does an IVA stay on my credit file?
Six years from the date your IVA started. You're also listed on the Insolvency Register until three months after it ends.
Can I get credit during an IVA?
You must not borrow more than £500 without your supervisor's permission, and lenders are unlikely to approve applications while your IVA is active.
Does an IVA affect my partner?
An IVA is personal to you, so it won't appear on your partner's credit file unless you have joint finances that link you. Their income may be taken into account in your household budget.
What happens when my IVA finishes?
You receive a completion certificate, the remaining included debt is written off, and you're removed from the Insolvency Register three months later.
What if I can't keep up my payments?
Contact your supervisor straight away. Payment breaks, reduced payments and variations are often possible. If the IVA can't be rescued, it may fail.
Questions about your first conversation
Will you contact my creditors?
Not as a result of your enquiry. Creditors are only contacted if you decide to go ahead with a solution and it's being set up.
What should I have ready when you contact me?
A rough list of your debts, your monthly take-home income and your main bills is enough to start. Documents can come later.
Questions about getting started with us
How do I start?
Fill in the short form at the top of this page with your name, contact details, approximate debt level and the best time to reach you. Someone from our team will be in touch shortly.
Is my enquiry confidential?
Yes. Your details are used only to respond to your enquiry, and we won't contact your employer or creditors as a result of you getting in touch. See our Privacy Policy for more.
Do I have to go ahead with an IVA if I contact you?
No. The conversation is free and there's no obligation. Many people just want to understand their options before deciding.
Can you help if I don't live in the North East?
Yes. Our team is based in Newcastle upon Tyne, but we help people across England, Wales and Northern Ireland by phone and email.
What if an IVA isn't right for me?
We'll tell you, and explain which option looks more suitable, including free solutions and where to find them.