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Individual Voluntary Arrangement

Individuals who are struggling with debt may feel like they have nowhere to turn, but there are options available.

One such option is a voluntary arrangement, which is a legally binding agreement between an individual and their creditors. This type of arrangement can provide some relief from debt repayments, and can also help to protect an individual's assets.

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National Debt Advice is regulated by the Financial Conduct Authority to give Debt Counselling Advice to people who are struggling with debt.

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To find out more about managing your money and getting free debt advice, visit Money Helper, an independent service set up to help people manage their money. National Debt Advice is not associated with Money Helper.

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a legal agreement between you and your creditors to pay off your debts. This arrangement is usually set up by a licensed insolvency practitioner (IP). An IP is someone who is authorised by the government to help people with their debt problems.

 

An IVA can help you by giving you a way to pay off your debts over a set period of time, usually 5 years. This guide will help you understand what an IVA is and how it can help you resolve your debts.

Benefits and Risks

Benefits of a IVA:

You make affordable monthly payments, usually over five or six years

If you’re a homeowner you’ll usually be able to keep your home, as long as you maintain the mortgage payments and any secured loans on your property

There are no up-front fees, and we won’t charge you for debt advice

Once your IVA is set up, there will be fees set by your creditors, which you’ll pay in your monthly repayments

If you have a lump sum to offer, this can be paid as a one-off ‘full and final’ settlement, or a combination of a lump sum payment followed by monthly payments

Once you've made your final payment any remaining unsecured debt is written off and your creditors can't pursue you for payments

Risks of a IVA:

If there’s equity in your home, you’ll need to try to re-mortgage which may result in a higher interest rate

If you're unable to re-mortgage you can make a maximum of 12 extra payments or a third party can offer a sum equivalent to the equity

If your IVA fails, creditors may request the supervisor of your IVA petitions for your bankruptcy, however this is very unlikely to happen.

Your credit rating will be negatively affected

At the end of your IVA, only unsecured debts included in the arrangement will be written off. Any not included will remain outstanding

Your IVA will be recorded on a public register

How do I apply for a IVA?

01

The first step is to see whether an IVA is right for you. To do this use our free online calculator or call us and speak to one of our expert advisors.

02

If an IVA is the best solution to your debt problem our specialist Debt Advisors can help you through the set up process.

03

We'll review your case and advise if an IVA is suitable for you.

Other debt solutions you could qualify for:

A legal process that can provide relief for those struggling with debt.

A legally binding arrangement in Scotland. Read more...

Debt Management Plans can be the ideal solution. Read more...

Government Debt Respite Scheme.

A legal process that can help people in England and Wales.

Provide some relief from debt repayments.

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Why choose National Debt Advice?

We can reduce your monthly payments!* Not only that but we're:

An FCA Regulated Debt Counselling Service

Have a 24/7 Live Chat Support

Have excellent reviews on Trustpilot

We give impartial and confidential advice

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*Monthly payments are based on individual financial circumstances.

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Here’s an idea of what the process looks like:

1
Get Started

Complete the Debt Calculator 

2
Talk to Us

Speak to an FCA

Regulated advisor

3
You Choose

Choose a debt solution that best suits you and relax

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