Individual Voluntary Arrangement (IVA)
A formal agreement to pay your creditors what you can afford, from your income, a lump sum, the sale of assets, or a combination of these. We help people in Leeds, Sheffield, Bradford and across Yorkshire and the UK.
Please note: this page is a brief, general overview to help you understand your options. It doesn’t cover every detail or every possible route, and it isn’t legal or financial advice. Every situation is different, so please talk to us before making any decisions.
In short: a formal agreement to pay your creditors what you can afford, from your income, a lump sum, the sale of assets, or a combination of these.
An IVA is a legally binding agreement between you and the people you owe. Usually you pay an affordable amount each month, typically for five years. Money can also come from a lump sum provided by a third party, such as a family member, or from selling assets, if that is what you agree with your creditors. When the IVA ends, any remaining debt it covers is written off.
A licensed insolvency practitioner helps you put together a proposal for your creditors. If they accept it, the practitioner, now called your supervisor, makes sure the arrangement runs as agreed.
What happens
- We go through your finances with you and work out what you can afford to pay.
- We send your proposal to your creditors. It goes ahead if enough of them agree, usually those owed at least three-quarters of the money.
- Once it’s approved, the creditors it covers can’t take further action against you, and interest and charges on those debts are frozen.
- You make your monthly payments, and any lump sum or money from selling assets is paid in as agreed. If your circumstances change, the arrangement can sometimes be adjusted.
- When the IVA ends successfully, the remaining debt it covers is written off.
Things to know
- An IVA may not be a suitable option in all circumstances. Fees apply and your credit rating may be affected.
- An IVA can include business debts and personal guarantees, as well as personal debts.
- If you own your home, you may be asked to release some equity, usually towards the end of the arrangement. You won’t normally have to sell your home.
- Some jobs that are restricted by bankruptcy may still be possible with an IVA.
- If an IVA fails, you could face bankruptcy.
Other options
Individual Voluntary Arrangement (IVA) isn’t right for everyone. These are the other personal insolvency options, or you can compare them all.
What our clients say
Facing my financial position was overwhelming, but Conselia provided me with clear guidance and support. They were professional, approachable, and always explained the process in a way I could understand. Thanks to their expertise, I was able to regain control of my finances and start fresh. Highly recommended!
IVA client
I can’t thank Conselia enough for helping me through such a difficult period. Their team was understanding and completely non-judgmental, providing solutions tailored to my situation. They made what felt like an impossible challenge manageable.
IVA client
From our first conversation, Conselia made me feel reassured and in safe hands. They handled everything efficiently and were transparent about every step. I now have peace of mind and a clear path forward, and I’m so grateful for their support.
Company director
Dealing with insolvency is never easy, but Conselia turned a stressful situation into a manageable process.
Company director
I was hesitant to seek help, but Conselia put my mind at ease right away. Their professionalism, knowledge, and understanding were second to none.
Company director
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