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IVA help and support - do I qualify?

Do you feel overwhelmed by debt? An Individual Voluntary Arrangement could be the solution – allowing your unaffordable debts to get written off and preventing creditors from taking further action. 

What is an IVA?

An IVA is an option for those living in England, Wales and Northern Ireland. Before proceeding consider any applicable fees as well as the risk and benefits of affecting your credit score. Learn more about whether this arrangement suits you by clicking here.

Do I qualify for an Individual Voluntary Arrangement (IVA)?

If the answer to those questions is YES, an Individual Voluntary Arrangement (IVA) may be the key to a secure financial future. 

After successfully navigating through a five-year IVA program, your creditors are legally obligated to forgive any remaining balances. This can be life-changing for those struggling with unmanageable debt and the associated stress that comes with it!

Your IVA payment plan is tailored to your individual financial situation; it’s designed to fit around essential costs and ensure you can afford the repayment.

An Individual Voluntary Agreement (IVA) may be the answer. A legally-binding contract between you and your creditors, an IVA safeguards all of your assets – such as your home – from any recovery attempts made by creditors.

Our community is committed to helping you gain confidence in the services provided by Advice Debt, one of the most respected IVA specialists. Take advantage of our support and expertise today!

What debts can and can’t be included in an IVA?

Examples you can include in an IVA:

Examples you can’t include in an IVA:

If you are unsure whether a debt can be included, please call our helpline on 0800 470 3448, and a member of our team will be happy to assist you.

IVA questions answered

If you have a question about IVAs, take a look at the most commonly asked questions and answers below.

What is an Individual Voluntary Arrangement? (IVA)
An IVA is a legally binding agreement set up between you and your creditors, usually over a five-year period. It allows any unsecured debts to be written off at the end of the IVA. To enter an IVA, you must first get the agreement of creditors representing at least 75% in value of those who vote. Once they have agreed, it’s legally binding and they can’t pursue you any further – as long as you keep to the terms of the agreement.
How long does an IVA last for?
An IVA is a great way to tackle outstanding debt and improve your financial situation. The process generally takes 5 years, during which you may be asked to release equity from your home if applicable - or the term can be extended for another 12 months. Afterward, any debts will no longer appear on credit reports; giving borrowers a clean slate with which they can work towards building their future while keeping creditors at bay!
Do I qualify for an IVA?
In order to qualify for an IVA, you must owe money to at least 2 creditors and have a regular income. We will then carry out a full assessment of your circumstances to decide if this is the best debt solution for you. You must also be able to afford to pay a minimum of £80 into the arrangement each month after all off your essential living costs have been met.
What Debts can I include with an IVA?
The most common types of debt that can be included in an IVA are credit cards, personal loans, overdrafts, utility arrears, store cards, catalogues and payday loans. However, secured debts (like mortgages or other loans secured against your property) and some other debts (including student loans, fines and child support) will still have to be paid separately, outside of the IVA.
How much debt will be written off in an IVA?
The amount of debt that is written off in an IVA varies depending on your circumstances. The monthly amount you pay into the arrangement is based on your disposable income, so the figure will vary depending on how much money you have leftover to pay your creditors. As an example, in a 5-year IVA if you have £150 a month leftover to pay your creditors you will make 60 monthly payments of £150 = £9000. If your unsecured debt was £30,000, at the end of the 5 years, the remaining £21,000 will be written off and you will be debt-free.
Will my credit rating be affected with an IVA?
Yes, your credit rating will be severely impacted whilst you are on the IVA and 12 months after its conclusion. Once this period has passed your credit rating will start to improve.
What’s the difference between Bankruptcy and an IVA?
Struggling to cope with your debts? An IVA or Bankruptcy may be the solution. With an IVA, you can reach a legally binding agreement on how much of your debt is paid back over a set period – giving you control and financial security while helping solve those mounting bills! Or alternatively, bankruptcy could offer relief if creditors are offering unmanageable loan terms. Get in touch for more information now - we’ll help provide clarity so that the right option works best for you.
How long does an IVA take to set up?
Establishing an IVA can be a relatively swift process, taking as little of three weeks to up to six depending on the speed with which you gather necessary financial documentation needed for your creditors.
What happens if your IVA is not accepted by the creditors?
Our success rate on an IVA being accepted is around 90%. If in the worst case scenario your IVA was not approved we would look at alternatives such as a Debt Management Plan.
Do I have to be working to enter into an IVA?
An IVA could be a viable debt solution for anyone with a disposable income of £80 per month or more. It doesn't matter if you're employed, self-employed, retired - as long as your basic living expenses are covered, and you have enough money left over to make payments into an Individual Voluntary Arrangement each month.
Do I have to be a Homeowner to enter into an IVA?
Homeowners, tenants and those living with family or friends can take advantage of the benefits an IVA offers. Unlock a fresh start financially by exploring this debt relief solution today!
Can I cancel the IVA once I start?
You are entitled by law to terminate your IVA at any point during the Arrangement. This grants you the ability to cease with the program and handle your debts independently, should you choose to do so. However, please note that upon cancelling your IVA, your previous legal protection will be voided, leaving you susceptible to creditor intervention and potential debt collection procedures.
How Much Does an IVA Cost?
Our senior debt advisors are here to help you determine a reasonable monthly payment based on your unique income and debt situation. IVA fees will be worked into this amount - they won't come in addition! Get the full picture by taking a look at our article exploring IVA Costs and Fees.
What Happens if I stop paying into my IVA?
Missing a payment could have devastating consequences - if you become unable to keep up with payments, the Insolvency Practitioner or your creditors may pursue bankruptcy against you.

What are the advantages of an IVA?

What are the disadvantages of an IVA?

Will creditors accept the IVA?

Creditors will usually accept an IVA if they feel it is the best solution for them. This could be because it offers them a better return on their money than other options, such as bankruptcy.

One of the advantages of an IVA is that it allows creditors to recover some of the money they are owed. If you go bankrupt, for example, creditors may only receive a fraction of what they are owed.

An IVA also allows creditors to continue to receive payments over a fixed period of time, which can be more beneficial for them than getting nothing at all if you file for bankruptcy.

Why choose Advice Debt?

We can help you, today.

We all know how difficult it can be to manage our finances when we’re juggling debt and an ever-changing financial situation. That’s why we are here for you today offering expert advice that will put your mind at ease! We’ll work with what matters most, getting out from under the load of persistent debts so they don’t continue weighing down on every aspect of life.

Advice Debt Top Tips

Do I really need to buy this?
Avoiding debt can be a challenge in our modern world, where it's easy to get overwhelmed by all the temptations of spending. To stay on track with your finances, take some extra time before big purchases and ask yourself if you truly need that item.
Make budgeting a good habit
Mapping out and keeping track of your spending is essential for financial stability and success. Developing a budget can help you save money, recognize potential overspending habits before they start, as well as protect against unexpected expenses. Mastering the practice of creating an effective budget plan will go long way in helping to improve your overall credit rating.
Knowing your credit score
An excellent credit score is essential for any individual looking to access financial assistance. Without this metric, lenders may deny borrowers mortgages, car loans and other financing options; even something as simple as a phone contract could come at an immense price with the wrong rating. Therefore, it's important that you understand how your credit score can impact your life in various ways - from getting approved for major purchases to making sure you are paying reasonable costs on everyday transactions.
Borrow or save?
Deciding whether to save or borrow can be a difficult choice that carries lasting consequences. Saving may mean having less cash on hand in the present, but potentially avoids financial trouble down the road. Conversely, borrowing provides quick access to funds now; however if payments are not made in full and on time it could create prolonged problems with debt repayment. Ultimately, saving is often considered the safer option for making major purchases.
Have I checked the interest rates?
Before taking the plunge and borrowing money, take a look at that all-important APR. Keep in mind interest rates can vary dramatically - so make sure you research what sort of additional cost is involved with taking out your loan to ensure it fits within your budget!
Switching your credit card
Take advantage of low-interest credit cards to save yourself some money! Doing the research, you may even find a card with 0% APR - however this won't last forever. Make sure that if you switch providers and get one at zero percent interest, make it your priority to pay off debt during that period or else once it ends, interest rates will be added in full force.
Saving for a rainy day
Don't let debt be a factor in your future plans. A smart money move is to start putting away just a little bit each week - every penny counts! For example, squirreling £5 per week adds up over time; by the end of one year you'll have saved an impressive total of £260 (and if placed into savings that could grow even more!).
Don’t bury your head in the sand
Don't let your dilemma fester. If you find yourself in trouble, seek out professional advice to get back on the road to financial freedom. Advice debt services are well-equipped with experts who specialise in helping people resolve issues quickly and discreetly – so don’t hesitate to reach out for guidance!

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We know that debt is daunting, but after speaking with us, we can put together a personal action plan to put your mind at ease.

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Our team of experts help thousands of families every year across the UK get their finances back on track.

Is an IVA right for you?

We can discuss your eligibility.

Prefer to speak later?

We will offer guidance, support and a solution at a time that suits you.

*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.

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