Apply for an IVA

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 which time 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 experienced team will help you determine an appropriate amount per month 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.