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What is an individual voluntary arrangement (IVA)?

An individual voluntary arrangement (IVA) is a formal arrangement to pay an agreed amount off your debts over a shorter period.  An IVA usually lasts for five years. At the end of the IVA, as long as you have made the agreed repayments, the debt you have left is written off. An IVA has to be set up by an Insolvency Practitioner (IP) and most of your creditors (the people you owe money to) need to agree for the IVA to go ahead.

An IVA can be a good option if it would take you longer than five years to pay your debts back, but you do not want to consider applying for bankruptcy. To apply for an IVA, you usually need to have at least 2 different creditors and 3 or more debts that total at least £15,000.

My Money Steps will tell you if you can apply for an IVA. Start My Money Steps to find out.

 

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