Repay as much of your unsecured debts as you can afford, and write off the rest
Call us on 0800 970 7673 or fill in our simple form to recieve a no obligation call back from on of our friendly, experienced advisers.
Find out more about the fees involved with each debt solution.
Download the Insolvency Service guide to dealing with creditors.
Here is an example of how an IVA could make your debts more manageable.
| Credit card | £10,000 |
| Personal loan | £15,000 |
| Store card A | £2,000 |
| Store card B | £4,000 |
| Total owed | £31,000 |
| Current monthly repayment | £700 |
| During the IVA and once finished | |
|---|---|
| New repayments | £300 |
| Total repaid | £18,000 |
Repayments are based on affordability and vary from case to case.
Call us on 0800 970 7673or fill in our simple form to receive a free no obligation call back from one of our friendly, experienced advisers.
An IVA - which stands for Individual Voluntary Arrangement - is a formal repayment plan for people with unmanageable debts. It involves repaying as much of your unsecured debts as possible for (normally) five years, after which your remaining unsecured debt is written off, as long as everything goes to plan.
Most IVAs take five years to complete, although sometimes lenders will agree to a shorter or longer repayment term if necessary.
There are other things that can affect the timescale, too - for example, if you need to take a break in payments at any point (e.g. due to unemployment). You will be expected to make a fixed number of payments overall, so any break will add to the time it takes to complete your IVA.
You'll only be able to enter into an IVA if you genuinely can't afford to repay your unsecured debts within a reasonable period of time. However, you must still be able to commit to regular monthly payments.
But even if you meet the above criteria, be aware that an IVA must be approved by your lenders before it can start. Of those who choose to vote, 75% (by debt value) must be in favour for an IVA to be agreed.
As it's a formal insolvency procedure, you can only arrange an IVA with the help of a licensed Insolvency Practitioner (IP).
When you call us, we'll explain how an IVA works and help you decide whether it's right for you. If it is, one of our in-house IPs will help to get your IVA started.
Your new monthly payments on an IVA are based on what you can afford. Before we set up your IVA we'll help you to work out exactly what you can afford after you've taken care of other essential costs, such as bills.
Your minimum monthly IVA payment is generally fixed, but it could change if your available income changes (for example, you may receive a bonus or a pay rise). We'll carry out regular reviews to make sure your IVA is running smoothly.
There are also fees associated with our IVAs. However, this won't affect the amount you pay each month, or the length of the arrangement. Learn more about our fees.
Yes, although it doesn't actually reduce your secured debt repayments or write off any secured debts. Instead, it involves reducing your unsecured debt repayments to make sure your other essential costs - including secured debts - are affordable.
It depends. An IVA has a few advantages over bankruptcy - for example, homeowners won't be at risk of losing their home. On the other hand, bankruptcy doesn't usually last as long and doesn't require regular monthly payments unless you can afford them.
We're here to make sure you find the right debt solution for your needs - and if we think there's a more appropriate debt solution available, we'll tell you.
There are a few downsides to an IVA, like any debt solution. In particular, an IVA will have a big impact on your credit rating, with records visible on your credit history for six years after it starts.
If you're a homeowner, you may be required to release equity from your home in the final year of your IVA.
But remember - if you don't get the help you need with your debts, the long-term consequences could be even more severe.