Apply for an IVA
Apply for an IVA to stop your creditors taking action and write off unaffordable debt upon completion.
- Write off large portions of your unsecured debt.
- Reduce your monthly payments
Apply for IVA advice if:
- You owe £6,000 or more in debt
- Money is owed to two or more creditors
- You have a regular monthly income
UK residents have a right to debt help, and several tried and tested solutions can help not only to write off debt but also reduce pressure from creditors and freeze interest and charges. An Individual Voluntary Arrangement (IVA) may be one option that holds the key to your debt-free future.
- DEBT FORGIVENESS
Your creditors are legally obliged to write off any outstanding balances upon completing your IVA.
- REALISTIC PAYMENTS
The amount you pay towards your IVA is based on what you can afford each month.
- PROTECTS YOUR ASSETS
An IVA stops your creditors from taking recovery action against you.
Take a look at our online IVA Calculator tool for an idea of how much debt you can write off with an Individual Voluntary Arrangement.
A typical example of an IVA*
- Personal unsecured debt: £21,000
- Number of lenders: 5
Your monthly debt repayments:
DEBT REDUCED BY 72%
*These figures are based on the averages across all IVA's arranged for customers in 2023. We assess each customer individually based on their circumstances and payments to the IVA are based on what is realistic and affordable.
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The first step is the hardest but you’re in the right place – talking with one of our friendly assessors can help get the ball rolling.
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Debt help without judgment
Talk to us about your situation, and we’ll let you know if an IVA may be a potential solution for you.
No Obligation Service
We can carry out a debt suitability assessment, and if you qualify for an IVA we can help put together an application with you. There’ll be no obligation and we’ll be on hand to answer any questions you may have along the way.
What debts can be included in an Individual Voluntary Arrangement?
Some examples you can include in an IVA:
- Credit / Store Cards
- Council / Utility Bills
- Unsecured Loans
- HMRC Debt
- Vehicle and Property Shortfalls
Some examples you can’t include in an IVA:
- Secured Debts & Loans
- Mortgage or Rent Arrears
- CSA arrears
IVA advantages & disadvantages
As with any insolvency process, there are advantages and disadvantages. Below are some of the advantages to be considered when deciding if an IVA is right for you:
- No upfront fees are charged for setting up the IVA.
- If your IVA is approved, creditors who vote against your proposal or who do not vote at all are still bound by it.
- Once the IVA is approved, interest and charges are frozen by law, provided you keep up your payments.
- Your insolvency practitioner will help you prepare your proposal, including agreeing on the level of your household and personal spending based on guidelines acceptable to creditors.
- You make only a single payment each month. Your insolvency practitioner is responsible for administering and distributing your payments.
- You will never be forced to sell your home in an IVA.
- On successful completion of the IVA, the balance of what you owe your unsecured creditors included within the IVA is written off.
As with any insolvency process, you should consider the consequences of entering into an IVA. These include:
- During the term of the IVA, there are restrictions placed on your expenditure.
- Not all debts can be included in an IVA; for example, student loans, child support and maintenance, magistrate court fines and social fund loans are excluded from an IVA, but an allowance can be given to enable you to continue repaying these.
- Creditors are free to reject your IVA proposal.
- If you become entitled to any windfalls or inheritance over and above £500 during the term of the IVA, you may be required to pay them into the arrangement.
- If you fail to make the payments due under the terms of your IVA, then your arrangement could fail. If your circumstances change, the IP can ask creditors to agree to an amended offer; however, if creditors refuse to accept amended terms, the IVA may fail.
- If your IVA fails, you may still owe your creditors the amount you owe at the outset of the IVA.
- IVAs are recorded on the Insolvency Register, which is a public register.
- An IVA remains on your credit file for six years after it is accepted, which may harm your credit score.
Start by finding out if you qualify by answering the below questions
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IVA Debt Help FAQ
An IVA is a formal arrangement between the customer and creditors (which is legally binding) to pay all or part of their debts. The solution is set up professionally by an authorised Insolvency Practitioner. They generally last five years, so the customer would be expected to pay everything they can afford outside of agreed ‘reasonable’ living costs.
Your IVA will be registered on your credit record and it will stay on the register for the period of your IVA and for up to 12 months after your IVA has concluded. The effect of your IVA on your credit rating will depend to some extent on what your credit rating was like before your commenced your IVA.
Typically, an IVA lasts for 5 years. At the end of this, you may be asked to release equity in your home if you’re a homeowner.
If this isn’t possible, or you don’t own a home, the IVA may be extended by 12 months.
Upon completion, any outstanding debt will be written off, and the IVA will no longer appear on your credit file.
An IVA involves you paying back part of your debts over a set period of time – this is a legally binding contract.
Bankruptcy is a court order. It ends your liability for debts but can mean that your assets are sold in order to pay the creditors back.
Visit our page for further information if you’re considering an IVA or Bankruptcy.
An IVA is a 5 year contract which involves you paying back part of your debts over a set period of time, which legally protects your assets.
A Debt Relief Order (DRO) is much shorter, lasting 12 months. However, it is intended for those with little to no assets and with low affordability.
Visit our page for further information if you’re considering an IVA or Debt Relief Order.
An IVA is a formal agreement, meaning you would have legal protection from your creditors, whereas a Debt Management Plan is informal. Both involve you making monthly repayments to your debts.
We have provided some further similarities and differences if you are considering an IVA or Debt Management Plan.
An IVA will take around 3 to 6 weeks to set up, depending on how quickly you can gather the supporting information required to present to your creditors.
Just because you might not qualify for an IVA does not mean that you won’t qualify for another scheme. There are other arrangements to pay your debts back, we will refer you to a firm regulated to provide advice on alternative solutions.
No, you can enter into an IVA if you’re unemployed, self-employed, part-time, full time, retired or in receipt of benefits. As long as you have a disposable income above £90 per month after you’ve covered your essential living costs such as household bills, food, car etc.
You can enter into an IVA if you’re a homeowner, tenant or living with your family/friends.
No, since an IVA is a legally binding contract, you cannot just change your mind as you have agreed to the terms with your creditors.
IVA fees are payable if you decide to go ahead with the solution and a part of your monthly payment – not in addition.
Your payment into the IVA is based on your individual circumstances. One of our Financial Assessors will help you determine an appropriate monthly amount based on the information you provide about your income and debts.
Find out further information on IVA Costs and Fees.
If you do not keep up your monthly payments, you could be declared bankrupt by the Insolvency Practitioner or your creditors.
Where we can help?
We cover England, Wales and Northern Ireland
We want to help you on your journey towards being debt-free.
A brief introduction to Individual Voluntary Arrangement (IVA)
This is a formal arrangement between the customer and creditors (which is legally binding) to pay all or part of their debts. The arrangements are set up professionally by an authorised Insolvency Practitioner like ourselves.
They generally last five years, when the customer will be expected to pay everything they can afford outside of agreed ‘reasonable’ living costs. We do not administer any other debt solution products.
IVA opportunities can only be offered following an initial financial assessment. If an individual meets the required criteria for an Individual Voluntary Arrangement, further help can then be provided. Therefore, all our support is given in reasonable contemplation of an insolvency appointment.
A debt write-off amount of between 25% and 75% is realistic. However, the debt write-off amount for each customer differs depending upon their personal financial circumstances and is subject to the approval of their creditors.
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Is an IVA Worth it?
Money Advice help over 3,000 people in the UK every year
Our team of experts help thousands of families get their finances back on track with an IVA.
*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
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