An IVA (Individual Voluntary Arrangement) is a legally binding contract between you and your creditors. It allows you to pay an affordable monthly payment into a designated IVA account for the term of the contract, normally 5 years.
Setting up an IVA (Individual Voluntary Arrangement) requires the assistance of a qualified Insolvency Practitioner (IP) and the agreement of at least 75% of your creditors.
To be eligible for an IVA, your unsecured debt should be £15,000 or more, spread across three or more creditors. Additionally, creditors representing 75% of the debt should vote in favour of it.
You should also have a minimum disposable income of £200 over and above your non-debt-related payments for monthly repayments. Finally, it is necessary to gain the assistance and supervision of a licensed Insolvency Practitioner (IP).
 Advantages and disadvantages of an IVA
Advantages of IVAs:
 An IVA (Individual Voluntary Arrangement) can help you reduce your debt repayments by as much as two thirds.
The repayment plan will take into consideration your current income and based on this your monthly instalment may be calculated.
Disadvantages of IVAs:
To opt for an IVA, you need to fulfil the qualifying criteria.
Your creditors would need to accept the IVA proposal.
Q: Will I qualify for an IVA if I can’t pay off my debts?
It is quite possible though not automatic. Submit an enquiry and we will advise based on your individual situation.
Q: Who can enter into an IVA?
Individuals, sole traders or partners who are insolvent and cannot pay their debts can apply for an IVA as long as their disposable income is over £200.
An IVA is a good option for serious debt however talk to us to fully understand the options available to you. We can provide you with honest advice about IVAs and whether an IVA (Individual Voluntary Arrangement) would be suitable for you.
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