Individual voluntary arrangements ( IVA’s )

An IVA or Individual Voluntary Arrangement is a fixed term repayment plan for people with debts over £12,000 and live in England, Wales or Northern Ireland. People living in Scotland can take out a Scottish Protected Trust Deed, which is the Scottish version of an IVA. An IVA also protects the individual from the threat of legal action or bankruptcy from the creditors once it has been set up.

An IVA is set up to replace all unsecured debts with one monthly repayment amount based on affordability and lasts for five years (60 months). 

To apply for an IVA, consumers must speak with an IVA advisor or Insolvency Practitioner (IP) who can work out if the Individual Voluntary Arrangement is the best option to help you clear your debts or not. If the IVA is set up it takes on average about 5-8 weeks, and then you will here if your creditors have agreed to the repayment plan or not. For it to be successful 75% of your creditors have to vote in favour of the IVA plan.

Whilst in an IVA consumers are not allowed to take out any further unsecured credit such as credit cards, store cards, personal loans, etc. And if you fail to meet the terms of your IVA by defaulting on payments then the supervisor of the IVA can begin bankruptcy proceedings against you.