Explore Your IVA Options With Confidence
Understand potential debt solutions and see whether an IVA may be suitable for your circumstances.
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What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal, legally binding insolvency process, available in England and Wales, between an individual and their creditors. It allows unsecured debts to be combined into a single monthly repayment plan over a fixed term, which is administered by a licensed Insolvency Practitioner. At the end of the arrangement, any remaining eligible unsecured debt may be written off, subject to the terms agreed with creditors.
How an IVA works
An IVA follows a structured process that sets out how repayments are managed and agreed with creditors. Once an arrangement is approved, a single monthly payment is made towards unsecured debts, which is then distributed to creditors by the Insolvency Practitioner for the duration of the agreement.
Key stages typically include:
- Information gathering – financial details are reviewed to prepare a proposal.
- Proposal submission – a formal repayment plan is put forward to creditors.
- Creditor decision – creditors vote on whether to accept the arrangement.
- Ongoing payments – if approved, payments are made on a fixed schedule for the agreed term.
- Completion – once the term ends, any remaining eligible unsecured debt included in the arrangement is addressed in line with the agreement terms.
An Insolvency Practitioner is a licensed professional authorised to supervise formal insolvency processes in England, Wales and Northern Ireland. They are responsible for reviewing financial information, preparing proposals where appropriate, and administering any approved arrangement in line with agreed creditor terms and established insolvency standards and protocols.
IVA eligibility
Individual Voluntary Arrangements are typically considered in situations where an individual has multiple unsecured debts and is seeking a structured formal insolvency process to manage repayments over a fixed term. Common factors that are usually taken into account include:
- A regular source of income to support monthly payments
- Unsecured debts such as loans, credit cards, or overdrafts
- A level of debt that cannot be managed through standard repayment alone
- A requirement for creditor agreement through a formal proposal process
All arrangements are subject to assessment and approval by creditors as part of the formal process.
Potential benefits and important considerations
Before considering an IVA it is important to understand the benefits and considerations. The mains ones are listed below but as with any debt solution, its important to seek professional help before deciding whether to apply or not.
Potential benefits –
- One affordable monthly payment
- Creditors should stop direct contact
- A Structured repayment period
- Remaining eligible unsecured debt may be written off on completion
Important considerations –
- An IVA is a formal insolvency process
- Your credit score will be impacted
- Homeowners may need to release equity
- Not all debts can be included
Provide a few details to explore whether an IVA may be suitable for your circumstances. All enquiries are confidential and without obligation.