Everything you need to know

An IVA is a legally binding agreement between you and your creditors to repay a portion of your unsecured debts over a fixed period, typically five to six years. It is set up and supervised by a licensed Insolvency Practitioner. Once your creditors accept the proposal, they are legally required to freeze interest and charges on the debts included. At the end of the IVA term, any remaining debt covered by the arrangement is written off.

The amount written off varies depending on your circumstances. In some cases an IVA can write off 50% or more of total unsecured debt, but this is never guaranteed. The key factors are your income, essential expenditure, and the total amount you owe. Your partner adviser will give you a realistic estimate based on your specific situation before you agree to anything.

In most cases, yes. An IVA is designed to help you manage your unsecured debts without putting your home at immediate risk. However, if you are a homeowner, you may be asked to release equity from your property in the final year of the arrangement, typically by remortgaging. If remortgaging is not possible or the costs are too high, your IVA may be extended by up to 12 months instead. Your partner adviser will explain exactly how this works.

Life does not stand still, and your Insolvency Practitioner understands that. If your income drops or your essential costs increase, your monthly payments can often be reviewed and adjusted. If you receive a windfall such as an inheritance or PPI refund, you may need to pay some or all of it into the IVA. Your IP will work with you to find a fair solution if your situation changes.

To qualify for an IVA, you typically need to owe at least £6,000 in unsecured debt to two or more creditors, and you must be able to make regular monthly payments. You do not need to be a homeowner. IVAs are available to residents of England, Wales, and Northern Ireland. Scottish residents have a similar solution called a Trust Deed. Your partner adviser will confirm whether you may be eligible during your no-obligation assessment.

Your details are passed to one of our authorised debt solution partners, and they will get in touch with you. They — not us — will review your financial situation, explain the options available and recommend a solution if one is suitable. We will tell you who your details have gone to. There is no obligation to proceed at any point, and you are free to go to a debt advice provider directly instead.

The form itself takes about two minutes. Your partner's initial assessment can usually be completed in a single phone call lasting around 20 to 30 minutes. If you decide to proceed with an IVA, the proposal is typically sent to your creditors within a few weeks, and they have 14 days to vote on it. Most IVAs are approved within four to six weeks of the initial call. A DMP can often be set up even more quickly, sometimes within days.

Your partner will need proof of your income (such as recent payslips or benefit statements), details of your monthly expenditure, and a list of your debts including the creditor names and approximate balances. You do not need exact figures to get started — they can help you gather the information during the assessment. Bank statements from the last three months are also helpful.

We take data protection seriously and comply fully with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. Your information is stored securely. Because our role is to introduce you, the details you give us are passed to the authorised debt solution partner we match you with — that transfer is the whole purpose of the form, and our Privacy Policy sets out exactly what is shared and with whom. Beyond that, your data is only shared with parties directly involved in administering your debt solution, such as your creditors and the Insolvency Service where applicable. We will never sell your data or share it for marketing purposes.

If you enter a Debt Management Plan, you can stop the arrangement at any time because it is an informal agreement. For an IVA, there is a cooling-off period after the proposal meeting during which you can withdraw. Once an IVA is formally in place, ending it early can have consequences, including the possibility of bankruptcy proceedings by your creditors. Your partner adviser will explain all of this clearly before you commit to anything.