IVAs
An Individual Voluntary Arrangement can write off the qualifying debts you can’t afford, stop bailiff action and give you one affordable monthly payment.
See if you qualifyAn IVA is a legally binding agreement between you and your unsecured creditors, supervised by a licensed insolvency practitioner. It lets you avoid bankruptcy and usually keep your assets, including your home, as long as you keep up the agreed payments. Once approved, the creditors included can no longer take enforcement action such as bailiffs for those debts.
How an IVA works
Your monthly payment is based on what you can afford after an assessment of your income and expenditure. Once at least 75% of creditors (by debt value) who vote agree, all your creditors are bound by it. Interest and charges are frozen, and creditors must stop contacting you directly. It usually lasts 60 months, after which the qualifying debts included can be written off.
What you need to know
If you fail to keep up payments, the IVA may fail and you could be back where you started, which in some cases can lead to bankruptcy. Homeowners may be asked to release equity in the final year. Only the unsecured debts included in the IVA can be written off — secured debts must still be paid.
Fees
There are no upfront fees. Fees only apply if your IVA is approved and are incorporated into your monthly payment, so there are no separate bills. All fees are explained in full before you enter into any agreement.
Am I eligible?
- You have unsecured debts greater than £5,000
- You owe money to two or more creditors
- You can afford to pay at least £80 a month
Free, confidential advice with no obligation.
Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline and Citizens Advice.