4. Individual Voluntary Arrangements

An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner (IP), who will divide this money between your creditors.

The Money Advice Service has information on organisations that can advise you about whether an IVA is right for you.

Get an Individual Voluntary Arrangement

Use an insolvency practitioner to get an Individual Voluntary Arrangement (IVA)

Your insolvency practitioner works out what you can afford to repay and how long the IVA lasts. You’ll have to give details about your financial situation, eg your assets, debts, income and creditors.

Your insolvency practitioner will contact your creditors. The IVA will start if the creditors holding 75% of your debts agree to it. It will apply to all your creditors, including any who disagreed to it.


There are usually 2 fees:

  • a set up fee
  • a handling fee each time you make a payment

Make sure you understand the costs before asking an insolvency practitioner to act for you.

Your responsibilities

Your IVA can be cancelled if you don’t keep up your repayments.

Public records

Your IVA will be added to the Individual Insolvency Register. It’s removed 3 months after the IVA ends.