An IVA (Individual Voluntary Arrangement) is an agreement whereby you pay your creditors a set amount each month that you can afford after your income and living costs. On completing your arrangement the remaining balance of the debt is written off.  It is most appropriate for those who have debts of more than £5,000 and cannot afford to meet repayments, are receiving missed payment charges and increasing debt due to added interest.

An IVA can help you to resolve your unsecured debt without having to petition for you own bankruptcy. All you need to have is a regular household income and live in England, Wales or Northern Ireland.  Your unsecured debts will be consolidated into one, more manageable monthly payment which can start from as low as £70 per month, however those with a disposable income of less than £75 a month who meet the criteria would qualify for a Debt Relief Order (see Debt Relief Order page). This allows you to organise and take control of your finances by writing off the unaffordable debt and freezing interest.

The typical duration of an IVA is five years, though this can be longer or shorter depending on your own circumstances. In this time, you can start to make ends meet again and manage your money, knowing you are making a single affordable payment.

If you own your own home, we understand that continuing to live in your property is a priority and under the IVA you will not be expected to sell your home against your wishes. You will, be required to investigate the potential for a re-mortgage to realise some of any equity into your arrangement, however any release will be based on your disposable income so will not create any affordability issues going forward.

Any other assets which are not considered to be essential for general living may be expected to be realised to increase the amount of debt repaid to your creditors.