What is an IVA and how can it help?

An IVA (Individual Voluntary Arrangement) is a formal debt solution that could write off the unsecured debt you can't afford, as long as you commit to repaying as much as you can for an agreed time. Most IVAs last five years, although some are longer and a few are shorter.

How can I apply for an IVA?

Because it's a legal agreement, you must apply for an IVA through a licensed Insolvency Practitioner (IP). Our in-house IPs can help you with your application.

However, first of all we'll have to make sure it's the right solution for you. When you call us, we'll talk you through all your options - and if we think another solution might be more appropriate, we'll let you know.

How long does an IVA take?

Most IVAs last five years. However, depending on your circumstances, your IVA may be longer or shorter than this.

Although five years is the 'standard' length of time for an IVA, it is not uncommon for an IVA to last six years if the borrower can't release equity from their home, for example. And in some cases, an IVA could take less than five years if there is a good reason for it.

Would I qualify for an IVA?

You'll only qualify if you genuinely can't afford to repay your unsecured debts in full within a reasonable period of time. You must also be able to commit to regular monthly payments towards your debts.

Contrary to common belief, there isn't actually a certain level of debt you must have to qualify for an IVA. The most important thing is that you meet the above criteria. However, there are other things that could affect whether you qualify, so call our expert advisers on 0800 970 7724 to discuss your options.

How much would I pay each month?

Only what you can afford. Your new monthly payments on an IVA are calculated according to how much money you have left after you've paid your bills and taken care of your other living costs.

We'll carry out regular reviews of your circumstances, so if your circumstances change, your monthly payments could change too (as long as your lenders agree).

What are the disadvantages of an IVA?

Like any debt solution, there are a few disadvantages to consider with an IVA. For example, your credit rating will be affected for six years after it starts, making obtaining further credit much more difficult during that time. And if you're a homeowner, you may be required to release some of the equity in your home towards the end of the agreement.