Click here to find your solution today

How an IVA works

You could be free from debt in 60 months

With an IVA, writing off debt is a real possibility. If your lenders agree to the Arrangement, they will freeze interest and charges and write off any unsecured debts that still exist at the end of the IVA term.

And as it’s a legally binding agreement, you’ll benefit from fixed lower repayments and will have your very own Insolvency Practitioner taking care of all the arrangements for you!

So if you’re worried that your debts are getting out of control and you’re struggling with repayments, an IVA could be the right solution for you.

Five steps of an IVA

Click the steps below to find out more


Initial IVA Advisory Service:
To get the ball rolling, we will complete a financial review with you over the telephone to make sure we have full details on your current income and outgoings, including information on your debts and lenders.

We will then send you an IVA Advisory Service Pack which you must complete and send back to us. If you need any help with this, please let us know and we will arrange for a member of our friendly team to visit your home and help you to complete the paperwork.

We’re here to help you every step of the way and to make getting out of debt as stress free as possible.


Review documentation:
Once we have your IVA Advisory Service Pack back, we will make sure we have everything we need to forward your case on to an Insolvency Practitioner to ensure the IVA process is a smooth as possible


The Insolvency Practitioner will get to work:
The Insolvency Practitioner will prepare a proposal and present your case to your lenders. They will work as hard as possible to secure a lower repayment for you.

For the IVA to go ahead, the proposal will need to be voted on and approved by lenders representing 75% of the value of your debts.


Interest and charges frozen:
When lenders agree to the IVA, they will also agree to freeze interest and charges on your debts. Affordable repayments will be agreed and will be fixed for 5 years – so you’ll have peace of mind knowing that your debt repayments will not increase.


Clear and write off debt:
Providing you have kept to the terms of the IVA you can expect to be free from debts in 5 years. If any debts included in the IVA still exist at the end of the 5 years, these will be written off by your lenders.

  • Affordable repayments
  • Interest and charges frozen
  • Debts written off after 5 years
  • Clear debts on successful completion
  • Protection from lenders
  • Peace of mind

IVA: What you need to know

What debts can be included in an IVA?

Only unsecured debts can be included in an IVA, this means debts that are not secured against your property or something you own.

Included in an IVA:

  • Personal loans
  • Payday loans
  • Store cards
  • Credit cards
  • Catalogue accounts
  • Bank overdrafts

In some circumstances…

  • Rent arrears (from previous properties or current housing association property)
  • Mortgage arrears
  • Council Tax Arrears from previous properties
  • Last year or the previous year’s Council Tax from current property

Excluded from an IVA:

  • Mortgage repayments
  • Social funds and crisis loans
  • Hire purchase loans (e.g. car loans)
  • Secured loans
  • Utility bills
  • Student loans
  • Child maintenance
  • TV licence

Will lenders accept an IVA?

For the IVA to go ahead, the proposal will need to be voted on and approved by lenders representing 75% of the value of your debts.

If the proposal is approved, then the IVA will go ahead – even if some lenders during negotiations had said no to the Arrangement.

If you do not get 75% lender agreement, then you could consider another debt solution, such as a Debt Management Plan.

It’s legally binding for your protection

An IVA is legally binding and offers protection to you from lenders. So, they cannot contact you once the IVA begins or petition for your Bankruptcy – which offers great peace of mind while you repay your debts.

The IVA also offers protection to your lenders as you will be making regular payments every month.

Payments are fixed, so if your circumstances change, it is important to let your Insolvency Practitioner know.

If you fail to keep to the terms of the IVA, the Agreement could fail which means lenders could chase you for payment or even request that you are made bankrupt.

Insolvency Practitioner information

If you qualify for an IVA, we will transfer your case to a licensed Insolvency Practitioner who is qualified under the Joint Insolvency Examination Board and can practice as an Insolvency Practitioner.

To ensure you receive the best possible service, we work in partnership with selected licensed Insolvency Practitioners.

Once the IVA proposal is accepted by your lenders, the Insolvency Practitioner will become your Supervisor and will ensure that your IVA stays on track. They may request extra information from you regarding your financial situation and how it changes over time.

Your Insolvency Practitioner will make sure that the terms of the IVA are kept to by both you and your lenders. And at the end of the IVA period (usually 5 years), your unsecured debts will be cleared.

Homeowner information

When people are in debt, they worry about losing their home, which is why an IVA is a safe debt solution for homeowners because lenders can’t petition for your Bankruptcy providing you keep to the terms of the IVA.

If you own a home, you could be asked to release equity in the fourth year of the IVA to help repay your debts. This will only be required if you have equity in your property and will be discussed with you during the IVA.

Credit rating

If you already have a history of late or missed payments, then your credit rating may already be affected.

By entering into an IVA, you will no longer be repaying debts at the amount originally agreed with your lenders, which means your credit rating will be affected for six years from the start of your IVA.

This will also affect your chances of securing credit such as credit cards or loans in the future.

Will lenders write off debt?

An IVA typically lasts for a period of 5 years, after this time any debts that still exist will be written off providing you keep to the terms of the IVA and successfully complete the arrangement.

Find the right solution

Answer a few simple questions and we'll help you find your solution.
  • Total unsecured debt: £500

  • This field is for validation purposes and should be left unchanged.

Find the right solution

Answer a few simple questions and we'll help you find your solution.
  • Total unsecured debt: £500

  • This field is for validation purposes and should be left unchanged.

Debt advice you
can trust...

Debt Advice You Can Trust
We are committed to providing the highest standard of service to our customers and helping them find their way out of debt with the most appropriate debt solution.

Money Advice Service

You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.