An individual voluntary arrangement or an IVA is a debt solution available in England, Wales and Northern Ireland. It an agreement between you and your creditors that can help you pay off your debts at a rate that you can afford.
It is not available if you reside in Scotland. A similar debt solution is available for people living in Scotland in the form of the protected trust deed. Though these two offers the same solution, they differ in terms of benefits, costs and risks.
How does Individual Voluntary Arrangement work?
IVA or individual voluntary agreement is a legal binding agreement that protected you from your creditors. This means, if you have an IVA and is able to comply with the IVA terms, your creditor cannot take further action against you.
Do I need my creditors to agree to the IVA?
Your creditor will have a meeting to decide whether to approve your IVA or not. This means your IVA will depend on the discretion of your creditors.
Moreover, you need at least 75% of the total value of your debts represented by creditors to approved your IVA for it to commence.
They can agree to vote for your IVA but in some cases, they may prefer to modify your offer. These modifications are changes on your IVA proposal as per creditor’s request. If you need to review your budget, the meeting can be adjourned for up to 14 days. Your IVA will be approved once your creditor agrees during the meeting.
Is IVA or individual voluntary arrangement right for me?
Our debt experts can help determine whether an IVA is best for you. If it’s not, we will evaluate your situation thoroughly and determine the best debt solution that suits your needs. You can use our debt advice tool for impartial debt advice. Should you want to speak to our debt experts call us on 0800 193 1024.