Individual Voluntary Arrangement
One affordable monthly payment, usually for five years. If it’s approved and you keep to it, the rest of what you owe could be written off.
Roughly how much do you owe?
It takes about 5 minutes, and there’s no obligation to go ahead.
- About 5 minutes
to answer a few questions online
- No obligation
nothing goes ahead unless you agree
- A partner debt firm
we pass your details to one
- A real person
an adviser can call to talk it through
At a glance
Where it applies: England, Wales and Northern Ireland.
- Where it applies
- England, Wales and Northern Ireland
- How long
- Usually about five years
- Agreed by
- The people you owe, by vote
- Recorded
- On your credit file and a public register
General information, not advice about your situation. Limits, fees and lengths change, and the rules differ across the UK.
Why people choose it
One affordable payment
Based on what you can afford after essential costs, and shared between your creditors.
A fixed end date
It runs for a set time, so you know when it’s due to finish.
It isn’t bankruptcy
It may suit someone who owns a home.
How it works
A specialist looks at your money
They go through what you owe, own and can afford, and explain how an IVA would work for you.
A proposal is drawn up
It sets out what you’d pay and for how long.
Creditors vote
If enough of them agree, it binds all the creditors it covers.
You make your payments
Pay each month for the full term. If you keep to it, what’s left could be written off.
An example of how an IVA could work
An illustration of how an IVA could turn several debt payments into one. If it’s approved and you keep to it, part of what’s left could be written off at the end.
Let’s say you owe
- Credit cards
- £16,017.26
- Personal loan
- £9,871.40
- Overdraft
- £2,486.15
- Store card
- £1,742.58
- Catalogue
- £1,318.07
- Payday loan
- £1,187.50
- Buy now, pay later
- £964.21
- Energy bill arrears
- £713.36
- Total owed
- £34,300.53
An illustrative example, not a real client. Written off here means what you owe, less everything you pay in over the five years, with fees included. Results depend on your circumstances and your creditors’ approval, and no outcome can be promised. IVAs are only available in England, Wales and Northern Ireland.
Weigh it up
What could help, and what to know first.
What could help
- Once approved, creditors usually have to stop adding interest and charges, and stop taking action.
- A fixed term, with a date it’s due to end.
- It isn’t bankruptcy, so it may suit people who want to protect their home.
What to weigh up
- Fees are usually taken from your payments.
- It’s on your credit file for years and shown on a public register.
- If you own a home, you may be asked to release some of its value, or the term may be extended.
- If it fails, creditors may act again, and you could be made bankrupt.
- Not all debts can be included.
Is it right for you?
It could suit you if
- You have a larger amount of unsecured debt and a regular income.
- You can afford a monthly payment, but not enough to pay everything back.
- You want to protect your home and have a fixed end date.
It may not be right if
- Your debts are small enough to pay back another way.
- You don’t have a regular income.
- You don’t want a public record.
Other routes to compare
No one option suits everyone. People often compare these.
Debt Management Plan
One monthly payment shared between the people you owe
Debt Relief Order
For people on a low income with few assets
Bankruptcy
A legal process when you can’t pay back what you owe
Questions people ask
Is an IVA the same as bankruptcy?
No. An IVA is a deal with the people you owe. Bankruptcy is a legal process with different rules and effects.
Do creditors have to agree?
They vote. If enough agree, it binds all the creditors it covers, even any who voted against.
What happens to my home?
It isn’t sold as part of an IVA. You may be asked to release some of its value near the end.
What if I can’t keep up the payments?
Speak to whoever set it up as early as you can. It may be changed, but it could fail and you could be made bankrupt.
Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. MoneyHelper
Want to talk it through?
Answer a few questions and an adviser from one of our partner debt firms can call you. There’s no obligation to go ahead.