IVA facts

IVA stands for individual voluntary arrangement. An IVA is a legal process for people with unsecured debts which are usually greater than £15,000. It is a form of insolvency similar to personal bankruptcy.

An IVA is arranged by an Insolvency Practitioner (IP). An IVA uses your available income (after you have paid all your household bills) to make affordable monthly payments towards your debt over a fixed period of usually 5 years. The IP will put a proposal together to offer repayments to your creditors. Sometimes you can pay a lump sum towards your debts or a combined monthly payment and lump sum. Once the term of the IVA is over, the remaining debt is written off.

Before the individual voluntary arrangement can go ahead, creditors representing at least 75% of the total debt must vote in favour of the arrangement.

During your IVA, as long as you comply with the terms and keep up with payments, creditors will be unable to take any legal action to recover the debt.

Once a year, your IP conducts a review of your finances and a progress report is sent to all interested parties. They will also receive notification when the IVA is over.

IVA help and support

We can give you IVA advice and our online service CCCS Debt Remedy can tell you if an IVA is suitable for your situation. If not, we will recommend the most appropriate alternative debt solution for your circumstances.