Can I get an Individual Voluntary Arrangement (IVA)?

Also known as an IVA, Individual Voluntary Arrangements are a formal agreement between you and your creditors. It can give you more control of your assets than bankruptcy.

You agree to make regular payments to an insolvency practitioner who will divide money between your creditors.

The Money Advice Service can help you decide whether an IVA is right for you.

You must use an insolvency practitioner to make an Individual Voluntary Arrangement with your creditors.

They will work out what you can afford to repay and how long it will last. To do this, you’ll have to give them information about your assets, debts, income and creditors.

The insolvency practitioner will contact your creditors and start proceedings if the creditors holding 75% of your debts agree to it. This IVA will apply to all of your creditors, even if they initially disagreed with it.

An IVA stops your creditors taking action against you for your debts.

There are typically two types of fee associated with IVAs; a set-up fee and a handling fee every time you make a payment.

Make sure you’re aware of these costs before asking an insolvency practitioner to act for you.

Your IVA can be cancelled entirely if you don’t keep up with your payments. This is the insolvency practitioner’s decision; they can make you bankrupt if they have reason to.

However, you may still be able to keep your business running, if you have one, if you have an IVA.

Your IVA will be added to the Individual Insolvency Register. It’s removed 3 months after the IVA ends.