What is an IVA?

Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement is a legally enforceable deal with your creditors to pay all or a percentage of your debts over a period of time. You can agree to make regular monthly payments or a lump sum, or a combination of both. Third parties such as your family can contribute funds for the deal. The money goes to a licensed insolvency practitioner, who will divide it between your creditors.

You don’t have to include all of your debts in the IVA, which has to be approved by 75% in value of the creditors who vote on it. Once it has been approved, all creditors you do include must accept the terms, even if they voted against it. There are no rules about how large a percentage of your debts have to be paid, nor how long the IVA should last. Basically, an IVA is an extremely flexible way of dealing with debts that you cannot pay immediately and can be adapted to the circumstances for each individual.

When will an IVA be an appropriate solution?

An IVA works most effectively when:

  • If you are suffering sustained pressure to pay bills you cannot meet
  • If you have a temporary cash flow issue, so you can pay your debts, but not straight away
  • If you can only pay a proportion of your debts
  • If a third party is prepared to help you pay some or all of your debts, but they want to be sure that their contribution will enable you to make a fresh start without problems if your creditors still cannot be paid in full

Let’s Talk

For more information on an IVA, we offer an initial free consultation to review the situation and make recommendations on the best way forward. If we think that an IVA is the best route forward, our specialists can support you at every step of the way through the process. For a no obligation chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.


Alternatively, book a convenient time for us to contact you