Individual Voluntary Arrangement
If you’re dealing with debt, nonstop creditor calls, or bailiff threats, an IVA is one of the effective ways to get your finances back on track. This guide breaks down:
- How an IVA Works?
- IVA Pros & Cons
- IVA Impact on Credit Score
- Is an IVA Worth It?
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money. Further Information – The Insolvency Service has produced a Guide for people struggling with debt in the United Kingdom.
Speak To Our IVA Experts Today
What Is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to pay back part of your debts over a fixed period, usually five or six years.
It is set up by a licensed Insolvency Practitioner (IP) and approved by your creditors. Once approved, the IVA protects you from legal action and creditor harassment. You make one affordable monthly payment, and your IP distributes it among your creditors.
At the end of the arrangement, any remaining unsecured debts included in your IVA are written off, giving you a clean financial slate.
Read more in-depth: What is an IVA?
How Does an IVA Work?
An IVA works by bringing all your unsecured debts, such as credit cards, loans, overdrafts, and payday loans, into one manageable payment. The amount you pay is based on what you can realistically afford after covering essential living costs.
Once your proposal is submitted, your creditors vote on it. If more than 75% (by value of debt) agree, the IVA becomes legally binding on all.
Your payments are reviewed annually to ensure they stay affordable. In some cases, homeowners may need to address home equity in the final year, usually by extending payments instead of remortgaging.
What debts can be included in an Individual Voluntary Arrangement?
Some examples you can include in an IVA:
- Credit / Store Cards
- Unsecured Loans
- Overdrafts
- Council / Utility Bills
- HMRC Debt
Some examples you can’t include in an IVA:
- Mortgage or Rent Arrears
- CSA arrears
- Secured Debts & Loans
IVA Pros and Cons
Like any debt solution, an IVA has both advantages and drawbacks. Understanding both sides helps you decide if this is the right path for you.
See full breakdown: IVA Pros and Cons
IVA Pros:
- One affordable monthly payment
- Legal protection from creditors and bailiffs
- Debt written off after completion
- No more interest or charges
- Keeps your home and essential assets safe
IVA Cons:
- Affects your credit score for six years
- Some restrictions on credit during the IVA
- Publicly recorded on the Insolvency Register
- May require budget reviews and adjustments
An IVA does affect your credit score because it shows that you have been unable to repay debts in full. However, it is only temporary. The IVA remains on your credit file for six years from the start date, after which it is removed automatically.
During that time, your score may drop, but it can be rebuilt through consistent payments and good money habits. Once completed, many people find their financial situation much stronger.
For many people, yes. An IVA can be life-changing. It helps you clear unaffordable debt, stop legal action, and gain peace of mind.
It is not right for everyone, though. If you have very low income, no assets, or priority debts like council tax arrears, other solutions may suit you better.
Speaking to a regulated debt advisor at SLWB Ltd., will help you understand all your options and decide whether an IVA is truly worth it for your situation.
We Can Help You Manage Most Kinds of Unsecured Debt, Including:
We Handle All Bailiffs
How we helped Holly
Pressure Has Been Taken Off Me
I felt a lot of pressure had been taken off me once I had spoken to them. They kept me upto date every step of the way during my Iva set up and I was able to call anytime I needed advice
- £28,409 Debt Amount
- £104 Monthly Payment
- 79% Debt Write off
Holly
we’re here to Answer
all your questions
We know debt can feel overwhelming, and it’s natural to have questions before making a decision. Our FAQ covers the most common concerns about IVAs and other debt solutions so you can understand your options with confidence.
What debts can be included in an IVA?
Most unsecured debts such as credit cards, loans, overdrafts, and catalogue accounts can be included. Secured debts like mortgages cannot.
Can an IVA stop bailiffs or legal action?
Yes, once approved, an IVA stops all creditor contact and legal enforcement, including bailiff visits.
Can homeowners apply for an IVA?
Yes, homeowners can apply. Your property is usually protected, though equity may be reviewed in the final year.
How long does an IVA last?
Most IVAs last five to six years, depending on your circumstances and creditor agreement.
What happens at the end of an IVA?
Yes, but the joint account holder remains responsible for their portion unless they enter their own arrangement.
Ready to Take the First Step?
Get confidential support to stop the stress and take back control of your finances.
Email us – Enquiries@slwb.co.uk
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
SLWB LTD (Company No. 16451543).
Registered Office: Second Floor A, Cheadle Place, Cheadle, Cheshire, England, SK8 2JX.
Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930
What you need to know about Individual Voluntary Arrangements
(Insolvency Service)
We provide solutions to individuals throughout the UK, We Will help recommend solutions available to your circumstances in which you can then make an informed decision about which solution you qualify for is best for you and your circumstances.