Who is it for?

An individual voluntary arrangement (IVA) is a legal procedure for people with unsecured debts of £15,000 or more. It is an alternative to bankruptcy.

How does it work?

An IVA is arranged by an insolvency practitioner who will help and advise you throughout the process.

Your finances are assessed and the insolvency practitioner draws up a proposal for your creditors. Your available income is used to make affordable monthly payments towards your debt over an agreed amount of time, usually 5 years. You may also pay a lump sum as well as your available income. The remaining debt is written off at the end of the agreed time.

A creditors’ meeting is called and a vote is taken. If creditors representing at least 75% of your total debt vote in favour of the IVA, then it can go ahead. This means that the creditors can no longer take any legal action to recover the debt providing you keep to the terms of the arrangement. There is a fee involved but this will be included in the payments you make.

The insolvency practitioner contacts you once a year to review your finances and you and your creditors receive an annual progress report and notification when the IVA is complete.

How can we help?

Our online service, CCCS Debt Remedy, will be able to tell you if an IVA is suitable for you and if you decide to go ahead, CCCSVA, our IVA service, can support you through your IVA. You may also contact your own IVA provider if you wish.