Lines open 9am - 9pm - 7days
0800 043 50 43

IVA Information

A brief explanation of what an Individual Voluntary Arrangement is and how they work can be found below.

What is an IVA?

An IVA or Individual Voluntary Arrangement is a new legally binding agreement between you and your creditors which replaces all of your current unsecured credit agreements. Under the terms of the IVA your debts are consolidated down into one single monthly payment to be paid for a fixed period of time. At the end of the IVA all the remaining debt is written off by the creditors, leaving you free of debt.

Qualifying for an IVA

While individual cases will differ, generally to qualify for an IVA you must -

  • owe at least £6000 in unsecured debt
  • be unable to repay the debt by selling assets
  • have a regular employment income and/or benefits
  • owe money to at least 2 different creditors
  • Can afford to repay at least £80 per month

How long will the IVA last?

Generally the IVA repayments will be made for a period of up to sixty months (five years), although they can last longer in certain circumstances – for instance if you have had a payment break. There is however a large amount of flexibility and so the length of an IVA can vary significantly from case to case.

Benefits of IVAs

If you are having debt problems then the advantages of an IVA include that -

  • your monthly debt repayments can be reduced significantly - by up to two thirds in some cases
  • all further interest and charges relating to your debts will be automatically stopped
  • an IVA is a private agreement between you and your creditors and so no formal newspaper notification will be made
  • any legal action including bankruptcy proceedings will stopped once the IVA is approved

Disadvantages of IVAs

Individual Voluntary Arrangements can have some disadvantages which should be considered before entering into any agreement. These disadvantages include -

  • An IVA cannot include secured debts
  • You will be asked not to take out further credit during the IVA period
  • Your credit file will show that you are in an IVA for up to 6 years
  • Your creditors must agree to the IVA for it to go ahead
  • Your IVA may be extended for up to a further 12 months if you are a homeowner

Beginning an IVA

If you are having problems with debt then the first thing you should do is to speak to an specialist IVA debt advisor such as ourselves. There are many organisations such as Money Advice Service that are able to discuss your debt problems with you and suggest the best way to overcome them. In most cases this advice will be offered free of charge. Should an IVA be the best option for you then your case will be referred to an Insolvency Practitioner such as ourselves. Legally only a Licensed Insolvency Practitioner is authorised to prepare and manage an IVA.

IVA Information & Advice

For a more in-depth look at IVA's please continue to browse the rest of our site. If you have any questions relating to Individual Voluntary Arrangements or personal debt problems in general then please call us today on freephone 0800 043 5043 or alternatively email enquiry@ivaadvice.org.uk. A full list of ways in which we can be contacted can be found on our contact us page.

Is an IVA right for you

Answer a few simple questions and we'll help you find your solution.

Total unsecured debt : £4000



Can't read the image? click here to refresh.

I have read and accept the privacy policy.

Latest News
FeedWind
The IVA Advice site is owned by Guardian Insolvency Ltd. Guardian Insolvency Ltd is registered in England and Wales No. 07906134 whose registered address is Coppull Business Centre, Mill Lane, Coppull, Chorley, Lancashire, PR7 5BW. Data Protection Number: ZA093360