MoneyEase
A payment you can afford
Your payment is set by what’s left after your essential bills, so it’s often far less than you pay now.
Individual Voluntary Arrangement
One affordable monthly payment for about five years. Then what’s left of the debts in it is written off.
An IVA isn’t right for everyone, and fees apply. It will affect your credit rating. Only available in England, Wales and Northern Ireland. Free, impartial debt advice is available from MoneyHelper.
Roughly how much do you owe?
An IVA at a glance
- How long most IVAs last. Some run to six.
- 5 years
- Of the voting creditors, by what you owe them, must say yes to it.
- 75%
- A month, to one practitioner, set by what you can afford.
- 1 payment
- On your credit file, counted from the day it starts.
- 6 years
Figures from GOV.UK and the Insolvency Service.
Why people choose an IVA
One monthly payment
The debts in the IVA become one payment, to one practitioner, on one date each month.
Legal protection
Once it’s approved, the creditors in it are bound by it: no more calls, letters or court action over those debts.
Interest and charges frozen
No new interest, fees or charges can be added to the debts it includes.
A clear end date
Most IVAs end after five years, so you know from the start when it finishes.
Advice with no obligation
Our adviser explains every option first, for free. An IVA only goes ahead if it suits you.
How an IVA works
Tell us about your debts
Answer a few questions. One of our advisers calls you, goes through your income and outgoings, and explains every option, not just this one.
A proposal to your creditors
If an IVA suits you, our licensed Insolvency Practitioner writes a proposal: what you can afford, and for how long. Your creditors vote on it.
One payment a month
Once it’s approved, you pay one amount each month and we share it between your creditors. Interest and charges stop.
The rest is written off
When the IVA ends, usually after five years, whatever is left of the debts it included is written off.
Weigh it up
An IVA is a big commitment. Here is what helps, and the catch, side by side.
What helps
- One affordable payment a month, instead of many
- Interest and charges on the included debts are frozen
- Creditors in the IVA can’t chase you or take you to court
- You can usually keep your home
- What’s left at the end is written off
What to weigh up
- It stays on your credit file for six years
- Your name is on the public Insolvency Register while it runs
- Fees are taken from your monthly payments
- Homeowners may be asked to release equity near the end
- If it fails, creditors can chase the debts again
Is an IVA right for you?
You’re likely a fit if…
- You owe £6,000 or more in unsecured debt
- You’re struggling to keep up with your payments
- You owe money to two or more creditors
- You have a regular income
- You live in England, Wales or Northern Ireland
It may not be right if…
- Most of your debt is secured, like a mortgage
- You owe less than £6,000 in total
- You can comfortably keep up with your payments
- You live in Scotland: a Trust Deed is the equivalent
- You’re already in another insolvency procedure
Other ways out of debt
An IVA isn’t the only route. We’ll tell you which could work for you.
- InformalCan be used in England, Scotland, Wales
One affordable monthly payment, shared between your creditors.
- FormalCan be used in England, Wales
For a low income and few assets. Qualifying debts are written off.
- FormalCan be used in England, Wales
Clears most debts when nothing else will work.
Live in Scotland? IVAs aren’t available there: a Protected Trust Deed is the equivalent. About Trust Deeds
Questions about IVAs
How long does an IVA last?
Most last five years. Homeowners who can’t release equity near the end usually have it extended by up to a year instead.
Can my IVA be rejected?
Yes. Creditors owed at least 75% of the debt that’s voted on must agree to it. If they don’t, the practitioner can change the proposal and put it to them again.
Which debts can go into an IVA?
Most unsecured debts: credit and store cards, personal loans, overdrafts, payday and catalogue loans, buy now pay later, and arrears on council tax, energy and water. Mortgages and other secured debts, student loans, court fines and child maintenance can’t be included.
How much does an IVA cost?
The insolvency practitioner’s fees are usually taken from your monthly payment rather than paid upfront, and they are set out in the proposal before you agree to anything.
Will I lose my home?
Usually not. If you own your home, you may be asked to release some equity towards the end, for example by remortgaging. If that isn’t possible, the IVA is usually extended by up to twelve months instead.
Can I keep my car?
Usually, if you need it for work or family life and it isn’t worth a lot. If it’s on finance, that agreement is dealt with separately. Your adviser explains how it would be treated.
What if my circumstances change?
Your payments are reviewed each year. If your income falls, the practitioner can ask your creditors to accept less; if it rises, or you come into money, you may need to pay more in.
What happens if I can’t keep up?
Tell your practitioner straight away: missed payments can often be made up, or the IVA changed. If it fails, creditors can chase the debts again, and you could be made bankrupt.
Is there free help?
Yes. MoneyHelper offers free, impartial debt advice, and you don’t have to use a company like ours to get help with your debts.
You don’t have to sort this out alone
Tell us roughly what you owe and we’ll show you what could help. It takes two minutes, won’t affect your credit score, and there’s no obligation.
Roughly how much do you owe?