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Individual voluntary arrangement (IVA)

An IVA is a legally binding arrangement between you and your creditors, where they agree to an affordable monthly payment over a period of usually 5 years.

If you keep to the arrangement, your creditors will not chase you for payment. They will also not add any more interest to your balance unless your situation changes and you are able to pay the debts in full during the term of the IVA.

It is a form of insolvency, so your unsecured debts need to outweigh the value of your assets, such as property.

You cannot arrange an IVA without an Insolvency Practitioner (IP). Your IP will act on your behalf to draw up the proposal, hold a creditors’ meeting to get the proposal accepted, and support you throughout the arrangement. An IP will normally take the charge for their services out of your monthly repayment.

Before you consider applying for an IVA, it is important to first find out whether it’s the best option for you.

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CCCS Guide to IVAs

CCCS have produced a free IVA Guide.

Alternatively, you can read the guide here on the web on the following pages:

More IVA advice and help from CCCS

The following articles will help you learn more about individual voluntary arrangements and how CCCS can help you:

If you want to know if an IVA is suitable for you, you can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.

Individual voluntary arrangement FAQs

Do all my creditors have to accept an individual voluntary arrangement?

Your creditors can chose to accept or reject the proposal for an IVA. Alternatively, creditors may ask for modifications to the proposal that you have put forward before they will agree to the IVA. You should discuss any modifications with your Insolvency Practitioner.

What will happen to my assets in an individual voluntary arrangement?

You may be asked to sell valuable assets, but you are able to keep most of the things you need for day-to-day living.

If you are a property owner, and you have equity, you may have to re-mortgage to pay a lump sum into your IVA in the 4th year of the arrangement.

Will an individual voluntary arrangement affect my job?

If you are unsure whether an IVA will affect your job, you must check the terms and conditions of your contract of employment. You can also speak to your union representative or personnel department.

Can I cancel my individual voluntary arrangement?

An IVA is a legally binding agreement between you and your creditors. If you have an IVA and are struggling to pay it, you should talk to your Supervisor. Your Supervisor is the person who arranged your IVA. They will be able to help and support you with any problems you are having.