An Individual Voluntary Arrangement (IVA) is not suitable for everyone. Find out whether you may be eligible and what the key criteria are.
An IVA is a formal insolvency solution that allows you to repay a portion of your unsecured debts through one affordable monthly payment over a fixed period — typically 5 to 6 years. At the end of a successful IVA, any remaining qualifying debt may be written off.
However, IVAs have specific eligibility requirements, and not everyone will qualify.
This list is not exhaustive. An IVA practitioner will confirm exactly which debts can be included in your specific case.
If you proceed with an IVA after your assessment, here is what the process typically looks like:
An Insolvency Practitioner (IP) carries out a full review of your income, expenditure, assets, and debts to determine if an IVA is suitable and what monthly payment is affordable.
Your IP drafts a formal proposal to your creditors, outlining the terms of the IVA — including the monthly payment amount and the duration.
Creditors vote on the proposal. If creditors representing 75% or more of the debt value approve, the IVA is accepted — and all creditors are bound by it.
You make one affordable monthly payment to the IP, who distributes it among creditors. Interest and charges are frozen. Creditors cannot contact you.
After the agreed term (typically 5–6 years), remaining qualifying debt is written off. Your IVA is complete.
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An IVA does not automatically put your home at risk. If you are a homeowner, your IP may ask you to try to release equity near the end of the IVA — but this is assessed individually, and if you cannot do so, the IVA term may simply be extended instead.
Generally yes, especially if your car is needed for work. High-value vehicles may need to be addressed in the proposal, but a reasonably valued car is usually protected.
IVAs are on a public register, but employers rarely check this. Most employment contracts do not have clauses relating to IVAs — though some roles in finance or law may be affected. Check your contract if in doubt.
IVAs have a degree of flexibility. If your income drops significantly, your IP can apply to vary the terms. If it increases, you may be asked to pay more. Your IP will review your income annually.
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