If you’re thinking about an IVA as a debt solution, it’s important to get expert advice first to make sure it’s suitable for you. There are benefits and risks involved with an IVA and you need to know about these before deciding whether to enter into one.
In this section you can find out about how to get an IVA, the fees and costs involved and who can manage one for you.
How does an IVA work?
Under an IVA you make 60 or 72 affordable monthly payments towards your total debt, or you offer a lump sum settlement. 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 which you’ll pay in your monthly repayments.
Fees are detailed in your IVA proposal, which an IP will assist in drafting. Any fees have to be approved by creditors. Your IP will explain what fees you need to pay for your IVA.
To be approved, 75% of your creditors must agree to your proposal via a vote. Once it’s approved, you’re protected against legal action to recover the debts included.
In the IVA your finances are reviewed on an annual basis, and you and your creditors will receive a progress report. You’re also notified once the IVA is complete.
How do I get approved for an IVA?
To be approved, 75% of your creditors must agree to your proposal via a vote. Once it’s approved, you’re protected against legal action to recover the debts included.
IVAs are available in England, Wales and Northern Ireland. They aren't available if you live in Scotland. In Scotland, a protected trust deed is a similar solution, but has different benefits, risks and fees associated with it.
Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.