Write off unaffordable debt with an IVA
A legally binding agreement that freezes interest, stops creditor contact, and gives you one affordable monthly payment for a fixed term.
- Write off
- 60 months1
- 1 payment
- No charge
Why people choose an IVA
Write off up to 75%
Any unsecured debt still remaining at the end of the arrangement is written off — up to 75% in a typical example, though the exact amount depends on your individual circumstances. Your monthly payment is based on what you can realistically afford.
One monthly payment
All your debts combined into a single, affordable payment. No more juggling multiple creditors and due dates.
Legal protection
Once approved, creditors are legally bound. They must stop all contact, enforcement action, and recovery proceedings.
Interest and charges frozen
From day one, no new interest, penalty fees, or default charges can be added to your qualifying debts.
A clear, time-limited plan
A clear end date from the start: a fixed 60-month term of affordable payments. If you own your own property the term may be extended. When it completes, the debt it covers is settled.
No-obligation consultation with an authorised partner
No pressure and no obligation. A qualified adviser at an authorised partner assesses your situation and explains the available options, and an IVA only goes ahead if it is right for you.
What to weigh up first
- Your credit rating is affected — an IVA stays on your credit file for six years from the date it starts.
- It is a public record: your name appears on the Individual Insolvency Register until the arrangement completes.
- Fees apply. They are paid to the Insolvency Practitioner out of your monthly payments, and are set out in full before you commit.
- You live within an agreed budget for the term, with your income and spending reviewed each year.
- If you cannot keep up the payments, the IVA can fail — you would owe the remaining debt, and creditors could pursue it again.
- Some debts cannot be included, such as mortgages, car finance, student loans, court fines and child maintenance.
Your route out of debt
No-obligation assessment
A qualified adviser at an authorised partner reviews your income, outgoings and debts. They explain whether an IVA is right for you — with no pressure and no obligation.
Adviser consultation
Your Insolvency Practitioner prepares a formal IVA proposal outlining what you can realistically afford to repay each month, then presents it to your creditors.
IVA begins
Once creditors holding 75% or more of your debt vote in favour, the IVA is legally binding on all of them. You start making one affordable monthly payment.
Debt cleared
After completing your agreed term, any remaining unsecured debt included in the arrangement is written off entirely. You get a genuine fresh start.
Is this right for you?
You’re likely a fit if…
- You owe £6,000 or more in unsecured debt
- You are struggling to keep up with monthly payments
- You owe money to two or more creditors
- You have a regular source of income
It may not be right if…
- Your debt is mostly secured (mortgage, car finance)
- You owe less than £6,000 in total
- You are comfortably meeting all your payments
- You are already in an insolvency procedure
Questions, answered honestly
How long does an IVA last?
A standard IVA typically lasts 60 months (5 years). In some cases it can be shorter if you are able to offer a lump sum settlement to your creditors instead of monthly payments. Your Insolvency Practitioner will advise you on the best approach based on your circumstances.
Can my IVA be rejected?
Creditors holding 75% or more of your total debt by value must vote in favour for the IVA to be approved. If not enough creditors agree, the proposal may be modified and resubmitted. Your Insolvency Practitioner handles all negotiation with creditors on your behalf to give you the best chance of approval.
What happens to my home?
Your home is not at risk during an IVA — unlike bankruptcy, you will not be asked to sell it. Your partner adviser will explain exactly how an IVA would treat your home before anything is agreed.
Can I keep my car?
Generally yes, especially if your car is essential for getting to work or carrying out your job. Your partner adviser will discuss your specific situation and ensure that any vehicle you need is treated fairly within the terms of your arrangement.
What debts can’t be included?
Certain debts cannot be included in an IVA. These include mortgages, car finance (hire purchase), student loans, court fines, and child maintenance arrears. However, most forms of unsecured debt — including credit cards, personal loans, overdrafts, and catalogue debt — can be included.
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