An IVA is a legally binding agreement between you and your creditors to pay back all or part of your debts. An Individual Voluntary Arrangement (IVA) freezes interest and charges, allowing you to pay your creditors back over a set period. You can apply for an IVA if you can afford to pay something towards your debts, but not necessarily the full amount your creditors want. The IVA is set up by a qualified Insolvency Practitioner who will work with you to put together a proposal and ask your creditors for approval. If approved, the Insolvency Practitioner will supervise the implementation of the IVA and work with you towards successful completion. Upon successful completion of the IVA, any eligible outstanding debt will be written off.
Combine your unsecured debts into one manageable monthly payment.
Interest and additional charges are typically frozen once your IVA is approved.
Your insolvency practitioner will deal with creditors on your behalf.
Access support and guidance throughout your IVA journey.
Many unsecured debts can usually be included within an IVA, while secured borrowing is normally excluded.
Depending on your circumstances, there may be alternative debt solutions available.
A DMP is an informal agreement to repay your debts through affordable monthly payments.
Payments are distributed between your creditors, although some providers may charge fees. Some charities can provide DMPs free of charge.
A DMP does not provide legal protection and creditors may still take action to recover debts. Debts are repaid in full, which can make repayment periods lengthy.
A DRO is designed for individuals with low income, limited assets and lower levels of debt.
To qualify, you must meet specific criteria relating to debt level, assets, disposable income and residency within England or Wales.
If your financial situation improves significantly within 12 months of the DRO being approved, the arrangement may be cancelled.
Bankruptcy is a formal insolvency solution for individuals unable to pay their debts as they fall due.
Creditors can no longer pursue unsecured debts once bankruptcy is approved, and interest and charges are normally frozen.
Bankruptcy may affect assets such as your home or other items of value, and professional advice should always be considered before proceeding.
Find quick answers to some of the most common IVA questions, or visit our full FAQ page for more guidance.
Your creditors can sometimes take a little time to update their records after your IVA has been approved. If you receive correspondence you are concerned about, such as court proceedings or bailiff action, please send it to us so we can check whether it relates to debts included in your IVA.
If a creditor contacts you, let them know you are in an active IVA, try to obtain their contact details, and let our team know so we can contact them on your behalf.
Creditors are legally required to issue a Notice of Sum in Arrears annually. This is a statement only and is not a demand for payment.
If a creditor sells your account to a debt purchaser, upload the Notice of Assignment letter to your client portal and we will take care of the rest
You can set up and manage your IVA payments through your client portal under “Manage my payments”.
You can set up a direct debit, update card details, or make payments by standing order. If paying by standing order, please quote your IVA reference.
Payments can be arranged monthly, fortnightly, weekly, on the last working day of the month, or the last Friday of the month.
The fees charged are documented and agreed at the start of your IVA.
IVA fees usually include the Nominee Fee, Supervisor Fee and related expenses, often called disbursements.
Fees are deducted from your IVA payments, third-party funds, or other assets recovered by your IVA Supervisor in line with the agreed IVA terms.