Individual Voluntary Arrangement (IVA)
With an IVA you pay what you can afford, for a fixed amount of time. When you successfully complete your IVA, any debt you have not paid back will be written off.
You and the people you owe agree to terms that protect you both during your IVA. This is a flexible solution that can help you make a fresh start.
We are here to make your IVA a success. We will set up your IVA and are on hand to keep you on track throughout.
Get online debt advice to find out if an IVA is right for youKnow more about Individual Voluntary Arrangements (IVAs)
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A structured and flexible way to deal with debt
Take the pressure off with a clear payment plan
- Your IVA will be based on what you can realistically afford to pay
- We make sure you can still live comfortably while you make your payments
- Your payments cover all your IVA costs
- Your payments will be reviewed each year to make sure you still can afford them
- You can change or pause your payments if you need to
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Fixed number of payments
Plan for your debt-free day
- IVAs usually last between 5 and 6 years. Your IP will explain this to you
- Once you have made all your payments, you will be debt-free
- You may be able to settle your debt early if you come into money
- You may also use assets, such as equity in your home, to repay what you owe
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Reduce the debt burden
Lower the amount you owe or have to pay back
- Your creditors will agree to writing off some of your debt
- No more interest or charges can be added
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Legal protection
No further action from your creditors
- Debt collection must stop when your IVA starts
- No more scary letters, emails or phone calls
- Your IP will deal with your creditors for you and manage your payments
- You can keep your assets, such as your home or car
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Professional support throughout
We are with you until your IVA ends
- An expert team helps you set up your individual voluntary arrangement
- We are on hand until you complete your IVA
- We review your payment plan each year
- We will help you work out how to pay off your IVA more quickly – if this is what you want to do
Benefits of an IVA
- You pay a single monthly amount. This is based on what you can afford.
- There are no set up fees to be paid before your IVA is agreed.
- Your remaining debts are written off after you make your final payment. This means you do not pay them back.
- Interest, charges and debt collection stop when you are on an IVA. This means the amount you owe stops growing.
- Your insolvency practitioner deals with creditors on your behalf.
- Creditors included in your IVA cannot take legal action against you.
Risks of an IVA
- Your creditors could ask you to reduce your living costs if they feel they are too high.
- If you own property, you may need to remortgage and pay the money as a lump sum into the IVA. But this depends on how much equity you have. And it isn’t something you would usually be asked to do.
If you do not finish your IVA:
- None of your debts will be written off.
- You will have to pay them all back.
- Your creditors will contact you again.
- Your creditors can add any missed interest and fees.
How do I get an IVA?
- Get debt advice to find out if this is an option that can work for you.
- We will share a ‘personal action plan’ with you. This will tell you what you need to do next.
- We will draft your IVA proposal for you and send it to your creditors.
- We will deal with any queries so it can be approved.
- Once approved, we will arrange your monthly payments.
Common IVA Questions
When you go ahead with an IVA, you should always be working with a licenced insurance practitioner – as ours are.
There are some companies advertising IVAs who look like they provide them, but all they do is refer customers to other companies.
And there are some people who pretend to be us in adverts to scam people.
You should always get impartial advice before going ahead with an IVA.
Through debt advice you will find out if an IVA is right for you or if there are other ways you might be able to deal with your debts. Some companies make money from the number of IVAs they set up, so they are less likely to tell you about other options.
Always get free advice from IVA companies who are regulated by the Financial Conduct Authority (FCA). Just like we are.
It is very likely that you can write off a big chunk of what you owe.
Without looking into your finances in detail and drafting your IVA, it is not fair to make claims about how much can be written off.
Your IP will work this out with you. We always aim for the best agreement for you. That includes finding ways to pay off what you owe as early as you can.
Maybe it is, maybe not. But waiting and hoping for things to get better may not always work out.
Read our guides below to find out more about how IVAs work and how they can affect different parts of your life.
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These debt solutions work in different ways. Whether they are right for you or not depends on your situation.
You should only go ahead with a debt solution after having impartial debt advice. And only if you are sure you understand how your solution can affect you.
With a DMP, you make monthly payments towards your debts. It is different to an IVA because it is 'informal'. That means you can stop any time and you do not have protection from the people you owe.
Bankruptcy is another type of insolvency, but has different rules to an individual voluntary arrangement.
Every IVA costs money to set up and run. You pay your fees through your monthly IVA payment.
- Your fees are detailed in your IVA proposal, which an insolvency practitioner will draft
- Any fees have to be approved by creditors
We pay our IVA fees back into the charity, so we make no profit from them. And there are no set up fees for IVAs with StepChange.
Many types of credit are included in an individual voluntary arrangement. Such as credit cards, loans and overdrafts.
Your insolvency practitioner will let you know debts can and cannot be included.