Individual Voluntary Agreement (IVA)

Benefits of an IVA

Things to consider

One affordable monthly payment


Requires approval from at least 75% of your unsecured creditors
Freeze all interest and charges Will stay on your credit report for 6 years and affect your credit rating
All creditor contact will cease and be handled by your Insolvency Practitioner Legally binding contract with limited flexibility
You receive full legal protection from any further creditor action


If your financial situation improves you may be required to increase your payments
Fixed term of an IVA is usually 60 months. Any remaining debt after this time will be written off. If you earn substantial overtime or bonuses you may be required to pay a portion into the IVA
If your situation worsens the IVA may be altered to suit your new circumstances If you are a homeowner you be required to attempt to release equity or extend the IVA for 12 months in lieu of equity release
Debt remaining at the end of the fixed term will be written off Your details will be recorded on the Insolvency Register

What is an Individual Voluntary Agreement (IVA)?

An IVA is a legally binding arrangement between you and your unsecured creditors. You agree to pay one affordable monthly repayment over a period of time —usually five years. After that, any unsecured debts you haven’t been able to repay are written off.

Do I qualify?

You’ll need a minimum of circa £6,000 of unsecured debt from at least two lenders. These could be credit cards, loans, catalogues, store cards etc. You must be struggling to meet current repayments. Not everyone qualifies, subject to certain criteria and according to your individual circumstances.

How does it work?

Your income and expenditure will be assessed to calculate your monthly surplus income. This will be your IVA payment.

Rather than paying your creditors directly, you’ll make one reduced, affordable monthly payment to cover all your included unsecured debts. This will be managed by your Insolvency Practitioner (IP) giving you the peace of mind and reassurance that you on the path towards becoming debt free.

This will be reviewed at least once a year to ensure the IVA payment is still affordable to you.

To propose an IVA to your creditors you will need to instruct/engage a licenced Insolvency Practitioner (IP). Our direct Insolvency Practitioner for the Debt Resolution Service Limited is Jason Bowen who is licenced to act in the UK by the Institute of Chartered Accountants of Scotland – Licence no. 22150.  Any specific IVA advice will be given in anticipation of the appointment of Jason Bowen as your IP.  However, if for whatever reason Jason Bowen is unable to take the anticipated appointment, then your details may be referred to a suitable alternative IP to avoid any process delays or detriment.


Get in touch with us

No one should have to deal with financial troubles alone. Whether you’re looking to resolve your financial struggle once and for all or just want to ease the burden by talking things through, we can offer you information and assistance on how best to proceed. Get in touch today to take the first step towards a better financial future. See if you qualify.