Individual Voluntary Arrangement (IVA)

An IVA is a legally binding agreement set up between you and your creditors for you to repay an amount you can afford over a fixed period of time; usually around five years. It allows any unsecured debts to be written off at the end of the IVA.

With an IVA, a considerable amount of your unsecured debt could be written-off. However, the figure will vary depending on your circumstances.

The reason for this is because the monthly amount you pay into the arrangement is based on your disposable income. Your disposable income is worked out after we have looked at your incoming and outgoings to understand how much money you have leftover to pay your creditors.

As an example, in a 5 year IVA if you have £100 a month leftover to pay your creditors you will make 60 monthly payments of £100 = £6000.

If your unsecured debt was £20,000, at the end of the 5 years, the remaining £14,000 will be written off and you will be debt-free.

Last year, we wrote-off 80% of debt in half of all cases for clients who didn’t own a home.

How does an IVA work?

In order to set up an IVA an Insolvency Practitioner is required to set up and negotiate the IVA terms with the creditors. An IVA is a legally binding process and once you enter into one your creditors must speak to your Insolvency Practitioner for all matters related to your debts.

Every IVA is different. The terms of your IVA depends on factors such as your employment status, income, expenditure, your total amount of unsecured debts, number of creditors and how you spend your money generally.

Your IVA repayments to the creditors are calculated by analysing all of these factors. A proposal is then created based on the information you provide which details what you can afford to pay towards your debts each month.

The proposal is sent to your creditors (lenders) and a meeting is held with them where they can to decide if they want to agree to the IVA. You do not have to attend this meeting. If more than or 75% of your creditors, by debt value, agree to the terms of the proposal, then your IVA payments can begin, and you will be on your way to paying off your debts and becoming debt free.

On completion of the IVA, any remaining debt will be written off.

Fill in the form if you would like to find out more about an IVA and if it might be a suitable option for dealing with your debts.

IVA Advantages

• 1 easily affordable monthly payment based on your income and expenses.
• Unlike some of our competitors, we do not charge any Upfront Fees, saving you £100s.
• An IVA offers you protection from creditors.
• Creditor pressure is relieved as you can direct them to us.
• Most IVAs last for just 5 years (occasionally longer, although some can last a few months).
• All interest frozen immediately.
• Suitable for tenants or homeowners, individuals or couples, and even business owners.
• We can setup an IVA in as little as 4 weeks.
• Only 75% of your creditors (by debt balance) need to accept your proposal to make it legal.