What is an IVA?

An Individual Voluntary Arrangement (‘IVA’) is a formal and legally binding agreement between you and your qualifying creditors to pay back your debts over a period of time, with outstanding balances on included debts being discharged upon successful IVA completion. An IVA is available to customers in the UK (excluding Scotland) who have a minimum of £5,000 of qualifying unsecured debt. Residents of Scotland have access to a solution called a Protected Trust Deed, which although similar to an IVA is not exactly the same, therefore its own benefits and disadvantages/risks must be considered independently.


  • Interest and charges on included debts will be frozen.
  • All of your included debts will be consolidated into one monthly payment.
  • Your monthly IVA payment is based on your own financial circumstances to ensure this remains affordable for you and your situation.
  • Included creditors are no longer able to contact you regarding debt repayments.
  • You are legally protected from action being taken against you by included creditors.
  • There are no upfront fees; fees are incorporated into your monthly IVA payments.

Important Considerations:

  • If you’re a homeowner, you will be asked to try and re-mortgage 54 months into the IVA term, which may result in a higher interest rate. If you cannot remortgage, you may be asked to extend your IVA by 12 months instead.
  • Failure to keep up with your IVA repayments could lead to bankruptcy.
  • Your IVA will appear on a public insolvency register.
  • There are restrictions on the expenditure of a person who enters into an IVA.
  • An IVA is subject to the approval of the majority (by value) of your creditors; they do not have to agree.
  • Only the balances of debts included in your IVA will be written off on successful completion, any debts you have outside of your IVA will remain outstanding.
  • Entering an IVA can have a severe impact on your credit rating