A brief introduction to IVA, Individual Voluntary Arrangement.

This is a formal arrangement between the customer and creditors (which is legally binding) to pay all or part of the debts they have. The arrangements are set up professionally by an authorised Insolvency Practitioner. They generally last 5 years in which time the customer will be expected to pay everything they can afford outside of agreed ‘reasonable’ living costs. Fees & Key Information

How can an IVA Help me?

Click on our IVA Checker to see if you qualify. If you do, you’ll benefit from…

  • Up to 80% of your debts written off
  • All Creditor interest and charges frozen
  • Reduced monthly repayments
IVA Checker

We help over 5,000 people every year

With a decade of experience, you can be assured that our advice is both effective and reputable. At Money Advice, we understand the impact that debt has on those affected by it, and that the distress goes much further than those whose names the debts are written in. We therefore know how crucial it is to offer to best advice we can when addressing your debts, to ensure the most positive solution for you, relieving stress and allowing you to breathe again.

Sharon
Shropshire

Sharons debt has spiralled out of control after a chain of events left in a financial hole.
Is an IVA right for me?
Personal unsecure debt £22000
Number of lenders 1
Previous monthly debt payments £875
New monthly debt payments £120
67% of debt was written off

Joseph
Bristol

Personal unsecure debt £14400
Number of lenders 1
Previous monthly debt payments £748
New monthly debt payments £149
38% of debt was written off

Rebecca
London

Personal unsecure debt £38600
Number of lenders 1
Previous monthly debt payments £
New monthly debt payments £320
50% of debt was written off

Our promise to you

We promise to give you experienced, honest and sensitive supportive from the word go as we endeavour to help you with your debts. We will offer you your own experienced Financial Advisor who is always at the end of the phone to help. Your Financial Advisor will work alongside you to find the most suitable route for you to take, by calculating your debts and living expenses, to create a plan specifically designed around you.

Am I eligible for an IVA?
Example Unsecured Debts
  • Credit Card £14400
Total Owed£14400

Your monthly repayments would be

£748 Before an IVA
£149 After an IVA Reduced by 38%

*Figures based on an example IVA. Alternative solutions may be offered. Lenders are not obliged to accept less than contractual payments. Fees payable if continuing services are provided. Fees & Key information can be found here.

Individual Voluntary Arrangement (IVA) FAQ

This is a formal arrangement between the customer and creditors (which is legally binding) to pay all or part of the debts they have. The arrangements are set up professionally by an authorised Insolvency Practitioner. They generally last 5 years in which time the customer will be expected to pay everything they can afford outside of agreed ‘reasonable’ living costs.

Both bankruptcy and an IVA are known as insolvency options. 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.

 

An IVA will take around 4 to 6 weeks to set up. 

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 and one of our Financial Advisors are happy to help you find the right arrangement suited to you.

No- you can enter into an IVA if you are not employed, self-employed, part-time or full time. As long as you have disposable income per month after your general living costs and bills.

Not necessarily- you can enter into an IVA whether you are a homeowner, tenant or living with your parents.

No, since an IVA is a legally binding contract, you cannot just change your mind.

Typically, IVA’s last for 5 years.

Your payment into the IVA is based on your individual circumstances. One of our Financial Advisors will help you determine an appropriate amount per month based on information you provide about your income and debts.  

If you do not keep up your monthly payments, you could be declared bankrupt by the Insolvency Practitioner and your creditors.

Don’t worry if you do not qualify for an IVA, one of our Senior Advisors will be able to determine an alternative solution for you to undertake, based on your individual circumstances. 

Find your solution to debt

If you are unsure of what solution is best for you, click below to read more about alternative Debt Solutions and find the right one for you.

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