Individual Voluntary Arrangement (IVA): Help & Advice.
Solution for England, Northern Ireland and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
*In the last 12 months our IVA partner The Insolvency Group achieved a write off of 78% or more of debts on over 50% of its cases. Dated 28/07/2026
Honesty and Integrity
Support and Guidance
Ethical Practices
We make a difference
To find out more about managing your money and getting free advice, visit Money Helper
Authorised and regulated by the Financial Conduct Authority
Individual Voluntary Arrangement (IVA): Help & Advice.
Solution for England, Northern Ireland and Wales
May not be suitable for all. No loans provided. Fees and disadvantages may apply depending on the solution, Read here
"In the last 12 months our IVA partner The Insolvency Group achieved a write off of 78% or more of debts on over 50% of its cases. Dated 28/07/2026"
Honesty and Integrity
We make a difference
How can an IVA help me?
An IVA can help you deal with your debts through affordable payments, any unpaid debts at the end of an IVA are written off.
Once you enter an IVA your creditors are unable to take any further action against you.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors to repay your debts over a specified time. This legally binding arrangement is designed to simplify your debt management, providing a clear route to becoming debt-free.
We want to help you understand the process and determine if an IVA is the right choice for your financial situation.
Once you are in an IVA, your creditors must communicate solely through your Insolvency Practitioner (IP), preventing them from contacting you directly.
After completing the agreed-upon repayment period (typically five years), any remaining debt is discharged.
How does an IVA work?
Before applying for any debt solution, (including an IVA), it is important to discuss your situation to make sure you are aware of all your options.
An IVA is set up and managed by a qualified insolvency practitioner (IP). This individual works alongside you to create an initial proposal which is presented to your creditors for approval. This proposal typically calculates how much you can afford to pay over a certain period and, while the terms of an IVA can be very flexible, the agreement usually lasts between 60 and 72 months.
The creditors who hold at least 75% of your debt value at the meeting must agree to the terms through a voting process. Although an IVA can be refused there, most creditors will usually agree to the terms providing they are reasonable.
Once agreed, this arrangement gives you time to repay your debts while granting protection from your creditors. Your creditors should not make any demands or contact you and will work with your IP. A supervisor will be appointed to your case and will ensure that you are making your monthly payments.
"The team were supportive from the beginning. The advice was clear making it very easy to decide a solution path."
Linda
12 Jun 26
Verified company on Trustpilot
Individual voluntary arrangement FAQ.
IVA is a formal solution
What debts can be included in an IVA?
An IVA would cover most of your unsecured debts which include:
- Overdrafts
- Personal loans and catalogue debts
- Council Tax arrears
- Hire purchase debts shortfalls.
- Credit and store cards
- Mortgage shortfalls
- The money you owe to HMRC e-g income tax (unless deemed fraudulent)
- Gas, electricity, and water bill arrears
- Benefit overpayments (unless deemed fraudulent)
- Payday loans
- Informal debts from family and friends
- Joint debts, but the other person must also make payments.
What debts cannot be included in an IVA?
An IVA does not cover most secured debts. Debts not covered by an IVA include:
- Mortgages
- Student loans
- Social fund loans
- Court fines
- Child maintenance or child support dues
- TV license arrears
- Hire purchase agreements.
- Debts accumulated through fraudulent conduct.
- Certain forms of car finances
- Other secured debts
What types of IVA's are there?
There are different types of Individual Voluntary Arrangements.
The type depends on a range of factors such as your debt level and profession. IVAs broadly fall into three main categories:
- If you are Self-employed
- Sole or Joint (interlocking) IVAs
- Full and Final IVAs
Let’s examine each one in detail so you can work with your IP to pick the right solution for yourself:
- SELF EMPLOYED IVA’s
IVAs set up for self-employed borrowers work the same way as IVA’s for employed people – except there are a few key differences:
- Seasonal Income
- Self-employed IVAs are typically more flexible. This helps accommodate businesses and individuals with seasonal income. Your IP will prepare a cash flow statement to figure out your earning patterns and determine an affordable monthly sum.
- Business Credit
- If you need credit to run your business throughout the term of your IVA, a clause explaining your situation can be included in your IVA proposal which your creditors would need to approve. Normally, most lenders would allow business credit if it is repaid within 30 days.
- Trade Creditor Exclusion
- A self-employed individual may need to procure goods and services from an unsecured creditor. Including such creditors in an IVA can severely undermine business relationships, which is why a self-employed IVA offers borrowers the option of excluding them from their arrangement and continuing making payments to them as before.
- JOINT IVAS
Joint (interlocking) IVAs enable couples to make one payment per household. Under a joint IVA:
- Couples can set up two separate IVAs that are administered as one, once they are approved by creditors.
- Joint debts are included in both agreements.
- Households make one affordable payment to all creditors.
- FULL AND FINAL IVAS
Full and final settlement IVAs allow people to pay a portion of their IVA in the form of a reduced lump sum payment. Full and final IVAs work for borrowers who:
- Want to offer a one-off payment to their creditors to settle their debts
- Have substantial savings or are selling a valuable asset to repay unsecured creditors
- Have family or friends who are willing to provide funds to cover their IVA
Can you cancel an IVA?
While it is possible to cancel an IVA, the decision to cancel before the pre-agreed duration ends should not be taken lightly. If you plan on cancelling your IVA, you should first contact your IP and inform them of your reasons. Your IP may be able to offer guidance and advise you. If you do not complete your IVA you could be in a worse position than when you started.
To terminate your IVA, you need to reach out to your IP in writing. Your IP will then send you a notice of cancellation stating that your IVA has failed. Once this happens, you need to:
Get in touch with all your creditors and negotiate repayment.
Create a repayment schedule for all your creditors because you still owe them the outstanding amount. If your arrangement fails, you will not be able to write off your remaining debt.
Pay your IP for any services they may have offered thus far
If your IVA is nullified, your creditors or Insolvency Practitioner can petition for you to be made bankrupt. If your creditors file for bankruptcy, they do not need to send you a ‘statutory demand’ beforehand.
Eligibility of an IVA.
Unsecured debts with a combined total of £7,000
You owe money to 2 or more creditor
You should have a stable source of income (employment, benefits, or pension)
You should be able to afford to make payment each month
You can apply for an IVA whether you’re employed, unemployed, self-employed, or retired
You must be a resident of England, Wales, or Northern Ireland
Here are some typical examples.
Individual Voluntary Arrangement Example
Example case completed in 2024
Repayment calculated using income and expenditure data. Monthly payments and write off percentages are based on individual circumstances.
IVA is typically for a period of 60 months, depending on your homeowner status
Nominees fees £1,900 & Supervisors fees £1,750 = total fees £3,650, this amount is deducted from the repayment amount over the 5 year period
Authorised and regulated by the Financial Conduct Authority
More than a Debt Management Company
At Debt Advisory Services, we are your partners in achieving financial stability, committed to providing honest, ethical, and supportive advice every step of the way.
Let us help you regain control of your finances and get your life back on track.
Together, we make a difference.
IVA Fees.
No upfront fees are required. Fees apply should you decide to enter an arrangement.
To set up an IVA, you need to instruct the services of an Insolvency Practitioner (IP) so there are some costs involved. An IP is a licensed professional.
There are three main costs associated with an IVA as shown below.
All these costs are already included in your monthly IVA payments, or any other monies you pay in.
The fees outlined within your IVA proposal will be £4,250 for a 5-year term.
This is subject to change if the term is extended for any reason or if further monies are introduced into the IVA (such as from the sale of an asset) but these will be detailed within your documents.
Your creditors may choose to modify these fees before acceptance of the IVA, usually, so they get a better return, these will be discussed with you for your agreement before the IVA can be accepted.
These costs include:
Nominee’s Fee
This covers the preparation of your IVA proposal, which includes assessing your current financial situation and repayment offer to creditors.
It also covers admin and facilitation costs during the process up to and including the approval of your IVA.
Supervisor’s Fee
A supervisor’s fee is also included within the fee proposed to your creditors.
Should additional monies be realised your Supervisor may be permitted to draw extra fees from those funds.
The supervisor’s fee covers the expenses incurred while implementing your IVA for its duration.
This includes the cost of collecting your monthly payment and distributing it to creditors, handling any queries from yourself or creditors, managing creditor relations, undertaking annual reviews, and any other work involved in implementing your IVA.
Disbursements
Disbursements may vary from case to case. If an IVA is agreed on a fixed fee basis, these costs will be included in this fee, however, if the fees are modified by your creditors these may be due on top of your Nominee & Supervisors fees.
Just remember, these will all be covered by your monthly payments. These will also be fully detailed within your paperwork.
Disbursements usually cover expenses paid to third-party companies for software licenses, insurance, or any requirements of the arrangement. They could also include the cost of additional services hired to offer the best returns to creditors.
Advantages with an IVA?
Will provide protection for your assets such as your home
No more threatening phone calls from creditors and bailiffs
Single payment each month with no upfront fees
Clear date for when you will become debt-free
All Interest and charges are frozen
Upon completion, your included creditors agree to write off any outstanding debts.
Disadvantages with an IVA?
Only unsecured debts can be included in the agreement
Before any further borrowing you must discuss with your IP
Spending restrictions are put in place during an IVA
An IVA will affect your credit rating for six years
Details of your insolvency will be recorded in the Individual Insolvency Register
Individual voluntary arrangement FAQ continued.
An IVA usually lasts for five or six years. However, in some cases, it can be extended by another 12 months to give borrowers a chance to repay their debt according to the agreed terms.
You also have the option of repaying your IVA earlier if you have a lump sum that can fully or partially cover your IVA payments.
Your IVA will be registered on your credit record, and it will stay on the register for the period of your IVA and for up to 12 months after your IVA has concluded. The effect of your IVA on your credit rating will depend to some extent on what your credit rating was like before you commenced your IVA.
If you have successfully complied with the terms of your IVA, once it is completed, the remaining balance of the included debts is written off and these creditors cannot take further action against you.
If you have been subject to an IVA, getting a mortgage right away can be difficult. The best way to get a mortgage is to wait until your IVA is complete and no longer showing on your credit report.
Some specialist lenders may consider you until then, but you will not get better market rates until your credit score improves, and creditors consider you a reliable candidate.
When you enter an IVA, all household goods and domestic goods are excluded from your arrangement by law.
This means that while creditors can request you to sell certain possessions to repay them, your consent is a prerequisite, and they cannot force you to do so if you do not want to.
Some essential items you will never be asked to sell include:
- Electrical appliances like computers, televisions, and phones
- White goods like refrigerators and washing machines.
- Cooking items and kitchen equipment
- Clothing
- Books
- Children’s items
- Furniture, fixtures, and fittings
- Medical aids like mobility scooters and wheelchairs
It is vital to tell your IP about any valuable assets you own so they can come up with a realistic estimate of how much you can afford to pay into your IVA every month. Let them know if you have any:
- Shares
- Endowments
- Insurance policies
- Investments
- Windfalls
- ISAs
- Savings
Banks can exercise their ‘right to offset’ by automatically deducting payment towards debt from your bank account. This could lead to financial difficulty and leave you with insufficient funds to meet essential living expenses.
The only way to prevent this from happening is to change your bank accounts. You need to open a new bank account if:
- You have outstanding debts to your bank
- Your bank owns a company that is a creditor.
- Both your bank, as well as the company you owe money to, are owned by the same umbrella company.
Any savings you have will also be included in your IVA. Your savings can also help you decide what type of IVA is available to you.
Your IP will review records of any pension contributions or payments, including the state pension, before drafting your IVA offer. If you are making personal pension contributions, your lenders can ask you to stop making payments during the term of the arrangement and pay the amount to them instead.
If you are aged 55 or above and you have a ‘defined contribution’ pension that you have not started withdrawing, you will not be expected to include it in your IVA, though you can if you want to.
Both you and your IP have duties to fulfil during the term of the arrangement.
Your core responsibilities include:
- Paying your monthly contributions on time: failure to make payments could result in the IVA being terminated.
- Submitting your documents: You will be required to submit relevant documents for an annual review. This can affect your monthly contributions; payments may go up or down during the term of the arrangement based on your circumstances.
- Keep your IP updated: You must inform your IP if your financial situation changes. This includes but not limited to; income changes, employment status, change in address, forgotten debts, or windfalls like lottery wins or inheritance.
How long does an IVA last?
An IVA usually lasts for five or six years. However, in some cases, it can be extended by another 12 months to give borrowers a chance to repay their debt according to the agreed terms.
You also have the option of repaying your IVA earlier if you have a lump sum that can fully or partially cover your IVA payments.
Will an IVA affect my credit rating?
Your IVA will be registered on your credit record, and it will stay on the register for the period of your IVA and for up to 12 months after your IVA has concluded. The effect of your IVA on your credit rating will depend to some extent on what your credit rating was like before you commenced your IVA.
What happens at the end of an IVA?
If you have successfully complied with the terms of your IVA, once it is completed, the remaining balance of the included debts is written off and these creditors cannot take further action against you.
Can You Get a Mortgage With an IVA?
If you have been subject to an IVA, getting a mortgage right away can be difficult. The best way to get a mortgage is to wait until your IVA is complete and no longer showing on your credit report.
Some specialist lenders may consider you until then, but you will not get better market rates until your credit score improves, and creditors consider you a reliable candidate.
Will my possessions or savings be affected?
When you enter an IVA, all household goods and domestic goods are excluded from your arrangement by law.
This means that while creditors can request you to sell certain possessions to repay them, your consent is a prerequisite, and they cannot force you to do so if you do not want to.
Some essential items you will never be asked to sell include:
- Electrical appliances like computers, televisions, and phones
- White goods like refrigerators and washing machines.
- Cooking items and kitchen equipment
- Clothing
- Books
- Children’s items
- Furniture, fixtures, and fittings
- Medical aids like mobility scooters and wheelchairs
It is vital to tell your IP about any valuable assets you own so they can come up with a realistic estimate of how much you can afford to pay into your IVA every month. Let them know if you have any:
- Shares
- Endowments
- Insurance policies
- Investments
- Windfalls
- ISAs
- Savings
Can I keep my bank account with an IVA?
Banks can exercise their ‘right to offset’ by automatically deducting payment towards debt from your bank account. This could lead to financial difficulty and leave you with insufficient funds to meet essential living expenses.
The only way to prevent this from happening is to change your bank accounts. You need to open a new bank account if:
- You have outstanding debts to your bank
- Your bank owns a company that is a creditor.
- Both your bank, as well as the company you owe money to, are owned by the same umbrella company.
What will happen to my savings?
Any savings you have will also be included in your IVA. Your savings can also help you decide what type of IVA is available to you.
Will I have to include my pension in my IVA?
Your IP will review records of any pension contributions or payments, including the state pension, before drafting your IVA offer. If you are making personal pension contributions, your lenders can ask you to stop making payments during the term of the arrangement and pay the amount to them instead.
If you are aged 55 or above and you have a ‘defined contribution’ pension that you have not started withdrawing, you will not be expected to include it in your IVA, though you can if you want to.
What are my responsibilities during an IVA?
Both you and your IP have duties to fulfil during the term of the arrangement.
Your core responsibilities include:
- Paying your monthly contributions on time: failure to make payments could result in the IVA being terminated.
- Submitting your documents: You will be required to submit relevant documents for an annual review. This can affect your monthly contributions; payments may go up or down during the term of the arrangement based on your circumstances.
- Keep your IP updated: You must inform your IP if your financial situation changes. This includes but not limited to; income changes, employment status, change in address, forgotten debts, or windfalls like lottery wins or inheritance.
How Debt Advisory Services Can Help You.
Your Finances
We’ll take time to understand your situation and finances
Your Options
We’ll talk you through your options and help you make those important next steps once you are ready.
Your Journey
We’ll be with you from start to finish and we are committed to helping you get your life back.
Get Started.Tell us about your finances and we'll recommend a solution
Step 1 of 4
How much debt do you have ?
Find out if you qualifyPlease complete the form and find out how one of the most largest solution providers in the UK can help you:Find out if you qualifyPlease complete the form and find out how one of the most largest solution providers in the UK can help you:Freeze interest and chargesStop all creditor calls and lettersReduce your debt payments
Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
Industry Standards
As a proud member of DEMSA, we are deeply committed to maintaining the highest industry standards.
This commitment ensures that our debt management services are conducted with the utmost ethical integrity, transparency, and professionalism.
We strive to build trust with both our clients and creditors, providing solutions that not only meet regulatory requirements but also foster confidence in our approach.
Our adherence to DEMSA’s rigorous standards reinforces our dedication to delivering reliable, trustworthy advice and support throughout your financial journey.
Let us help
Get started and find a solution with the help of an advisor.