IVA’s are only available for residents in England, Wales and Northern Ireland.

An individual voluntary arrangement (IVA) is a formal agreement allowing you to make affordable payments to your debts, usually over five years or six years if you are a homeowner. At the end of your IVA any unsecured debt included is written off.

Benefits of an IVA

• You make affordable monthly payments, usually over five or six years
• If you’re a homeowner you’ll usually be able to keep your home, as long as you maintain the mortgage payments and any secured loans on your property
• There are no set up fees to be paid before your IVA is agreed
• There are fees once your IVA is in progress, but these will be included in your monthly repayments and are set by your creditors
• If you have a lump sum to offer, this can be paid as a one-off ‘full and final’ settlement, or a combination of a lump sum payment followed by monthly payments
• Once you’ve made your final payment any remaining unsecured debt is written off and your creditors can’t pursue you for payments

Risks of an IVA

• If there’s equity in your home, you’ll need to try to re-mortgage which may result in a higher interest rate
• If you’re unable to re-mortgage you can make a maximum of 12 extra payments or a third party can offer a sum equivalent to the equity
• If your IVA fails, creditors may request the supervisor of your IVA petitions for your bankruptcy
• Your credit rating will be negatively affected
• Your creditors may not approve your IVA
• At the end of your IVA, only unsecured debts included will be written off, any not included will remain outstanding
• Your IVA will be recorded on a public register
• Once your IVA is set up your spending will be restricted until the IVA comes to an end