Money Advice, Debt Advice & Debt Help
What is an IVA

What is an IVA

What is an IVA

If you are struggling to pay what you owe an IVA allows you to settle debt in a fixed period of time. Anything outstanding at the end of the Arrangement is written off.

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What is an Individual Voluntary Arrangement (IVA)?

Is an IVA the right debt solution for you? How long does an IVA last? What happens to any debt which remains unpaid? Can you offer a lump sum to pay off an IVA early? To find out more please visit

An IVA is a Debt Payment Plan lasting 5-6 years

An IVA (Individual Voluntary Arrangement) is one of the options for dealing with personal debt in England, Wales and Northern Ireland. It allows you to make reduced payments towards your debts based on what you can afford.

It normally lasts 5-6 years after which any debts included that remain unpaid are written off. This allows the Arrangement to have a fixed end date.

There are certain circumstances where the length of the Arrangement can increase. It could be requested by your creditors. In addition if you are a home owner your monthly payments could be extended by 12 months if you are unable to release equity.

An IVA could also last for less than 5 years. This is the case if you do a Full and Final Arrangement or are able to settle the agreement early.

An IVA reduces your Debt Payments to an Affordable Amount

There is no standard amount that you will have to pay into your IVA. The payments you will be required to make are based your disposable income.

Having said that you will normally have to be able to pay a minimum amount of between £100-£150 a month. If you cannot afford this you might still be able to use the IVA solution if you can offer a lump sum.

Your payments will not necessarily remain fixed for the duration of the Arrangement. If your financial circumstances change for either better or worse your payments could increase or reduce.

Typically people who start an IVA have total unsecured debts of £9,000 – £10,000 or more. However in certain circumstances you may be able to use the solution if your unsecured debts are less than £8,000.

An IVA is a legally binding agreement. This means that once your creditors have agreed to it they are not allowed to continue to collect their debts from you. All their collection activities must stop.

They can no longer write to you or contact you by telephone with payment demands. They must also stop adding interest and late payment charges to your accounts.

You and your property are protected against any legal action that your creditors could otherwise take against you. Any current or future applications for a CCJ, Attachment of Earnings or Charging Orders against your property must be stopped.

If you already have a CCJ or Attachment of Earnings against you these will be cancelled once your IVA starts. However if a Charging Order has already taken out against your property this cannot be overturned.

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