An IVA or Individual Voluntary Arrangement is a Government approved scheme that allows you to turn your loans, credit cards, store cards and other debts into one affordable, single monthly payment so that you can pay off your debts and get on with your life. It is a formal agreement between you and your creditors whereby you repay what you can afford, usually over 60 months. After which, the outstanding debt is written off. By accepting the IVA, creditors agree to accept lower payments, not to pursue any legal action against you (including trying to make you bankrupt), and to write off any outstanding debt at the end of the IVA. You agree to pay as much as you can afford for the time agreed

If you are committed to taking control of your personal debts, keeping your home and avoiding bankruptcy then an IVA, could be the best solution to your debt problems.

An IVA is a simple, flexible and effective way of getting rid of all your debts. You can expect to write off between 25% and 75% of your unsecured personal debts with an IVA. The amount of debt that you can write off with your IVA will depend on what you can afford to pay.

Once an IVA has been agreed with your creditors, you'll pay a fixed amount each month, usually for a period of five years, and then you'll be free from debt. If you own your home, you will need to pay a percentage of the equity (calculated at today's values) into the arrangement. Your creditors cannot demand any additional payments from you unless your financial circumstances improve during the life of the IVA. If your monthly IVA payments don't cover the entire amount of your debts, your creditors will usually write off the rest of your debts.

During the IVA, the creditors are legally bound to freeze the interest on any outstanding debts and to cease adding late payment charges to the debtor's accounts.

IVAs take about 6-8 weeks to set up. During the repayment period all interest charges are frozen and all demands for money are stopped. Your creditors are not allowed to contact you. The Individual Voluntary Arrangement (IVA) is drawn up by one of our panel of licensed Insolvency Practitioners who then administer the arrangement.

Your home will not be at risk, and you will usually be able to keep your car. An IVA does not affect your professional status and your employment will not be affected, even as a company director, accountant, police officer or in the armed forces.

Once an IVA has been successfully completed any outstanding balances must be written off by the creditors, in many cases as much as 75% leaving the debtor debt free.

The size of the monthly repayments to the IVA are calculated with the help of the debtor providing the relevant documentation and are based on what the debtor can realistically afford throughout the term of the IVA.

Are Individual Voluntary Arrangements right for you?
Your debts must exceed £15,000. You must be a private individual (not a company). You must have a regular income. You can be a home owner or a tenant. You must live in England, Wales or Northern Ireland. If you don't quite fit these requirements we may still be able to help you. We can offer expert advice on the best solution for you.

There are many benefits of an IVA, some of which include:

You will only pay an affordable single monthly payment for a period of 5 years.

Up to 75% of your debt could be written off as part of the arrangement.

Creditors cannot change their minds once they enter the agreement as the IVA is legally binding.

As long as you comply with the IVA your creditors cannot bring any legal action against you.

You no longer need to worry about your creditors chasing you for payment

You are able to have a bank account as long as it does not have an overdraft facility.

Interest and charges are frozen on your accounts