IVA (Individual Voluntary Arrangement)

How could an IVA help?

Writes off the unsecured debt you can't afford
At the end of your IVA, any unsecured debt you haven't repaid will be written off - as long as you've kept up with the terms of the arrangement.

One affordable monthly payment
Your unsecured debt repayments will be combined into one manageable monthly payment. We'll pass on your agreed payments to each lender.

Stay in your home
You can keep the home you're living in with an IVA - unlike bankruptcy, which usually forces homeowners to sell their home.

How an IVA works

Before an IVA can begin, one of our Insolvency Practitioners (IPs) will help you put together an IVA proposal - which sets out the proposed terms of your IVA. We'll then send this on to your lenders.

Your lenders will be invited to vote for or against your IVA. For the IVA to be agreed, you must receive approval from 75% (by debt value) of voting lenders. If that happens, even lenders who did not vote in favour will be included in your IVA.

Once your IVA has started, you'll make a single monthly payment to us, from which we'll pass on the agreed amounts to each lender.

This will normally continue for five years, although some IVAs can last longer (or shorter). On successful completion, your IVA will come to an end and the rest of your unsecured debts will be written off.

Is an IVA right for me?

First of all, you should consider whether you qualify for an IVA. You'll only be eligible if:

• You are unable to repay your unsecured debts within a reasonable period of time
• You have more than one unsecured debt
• You can still afford to make regular monthly payments

However, none of the above guarantee you will be able to enter into an IVA - your lenders still have to approve your proposal. And it may be that there is another solution available that is better suited to your circumstances.

You should always discuss your options with an expert before you make any decisions. Our expert advisers are here to help - just call 0800 195 2714, or fill in the form at the top of this page and we'll get back to you.

Things to remember

Although an IVA could help you put an end to your problems with debt, it's not without a few consequences. It will be recorded on your credit history for six years from the day it starts, meaning obtaining further credit is likely to be a lot more difficult in that time. And homeowners who enter an IVA may be required to release equity from their property in the final year of the arrangement.