4. Individual Voluntary Arrangements

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

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

Get an IVA

  1. You can only get an Individual Voluntary Arrangement through an insolvency practitioner - find an insolvency practitioner.

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

  3. Your insolvency practitioner contacts your creditors. If those holding more than 75% of your debts agree to the Individual Voluntary Arrangement it will start. 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 Individual Voluntary Arrangement can be cancelled if you don’t keep up your repayments.

Public records

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

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