An individual voluntary arrangement, or IVA, is a legal process for those with unsecured debts of £15,000 or more.
An IVA is arranged by an insolvency practitioner (IP). Your IP will help and advise you throughout the process. They will assess your finances and draw up a proposal for your creditors.
With an individual voluntary arrangement, your available income is used to make affordable monthly payments towards your debt over an agreed period of time – usually 5 years. You may also pay a lump sum towards your debts. At the end of the agreed period, your remaining debts are written off. There is a fee involved in organising the IVA, but this will be included in the payments you make.
Creditors representing at least 75% of your total debt must vote in favour of the IVA for it to be able to go ahead. When your creditors agree to the IVA they are also agreeing to take no further legal action against you to recover the debt, providing you keep to the terms of the arrangement.
Your insolvency practitioner will contact you once a year to review your finances. You and your creditors will receive annual progress reports and you will be notified when your IVA is complete.
How can we help?
CCCS Debt Remedy, our online counselling service, will give you tailored debt advice and tell you if an IVA is the best solution for you. Should you decide to go ahead, CCCSVA, our IVA service, will support you throughout. You may also contact your own IVA provider if you wish.