IVA and insolvency

An IVA is a form of insolvency. It is arranged by an Insolvency Practitioner (IP) who draws up a proposal for your creditors. Your IP will propose that your available income (the amount you have left over after paying all your household bills) is used to make affordable monthly payments towards your debt over a fixed period of time; usually 5 years. Sometimes you may also need to pay a lump sum into the arrangement.

The IVA proposal is sent to your creditors and they vote on whether to accept it at a specially arranged creditors’ meeting. If creditors representing at least 75% of your total debt vote in favour of the IVA, then it can go ahead.

Providing you keep to the terms of the arrangement, at the end of the 5 years, any remaining debt is written off.

IVA assistance

As the UK’s number one debt charity, we provide IVA advice and support and can answer any questions you might have about individual voluntary arrangements.

Our online service, CCCS Debt Remedy, can tell you if an IVA is suitable for your circumstances. There are many debt solutions available for all kinds of situations and we can recommend the best one for you.