Quick answers
Debt and IVA questions, answered clearly
Use this page to understand the basics before you apply for anything. An IVA can help some people, but the right route depends on your debts, income, assets, and what creditors are already doing.
Start here
The most important IVA answers
Most IVA questions are really suitability questions. The key issue is not whether an IVA exists, but whether it gives you a better outcome than the alternatives.
If you are under pressure from creditors, start by understanding your rights, then compare debt solutions, then check whether an IVA could work for your budget.
IVA basics
Common IVA questions
These answers cover the points people usually need before speaking to an adviser.
What is an IVA?
An Individual Voluntary Arrangement is a formal agreement to repay what you can afford towards included debts. It is proposed and supervised by an Insolvency Practitioner.
Is an IVA right for everyone?
No. IVAs can help in some circumstances, but a Debt Management Plan, Debt Relief Order, bankruptcy, or informal arrangement may be more suitable for some people.
How long does an IVA last?
Many IVAs last 5 or 6 years. The exact term depends on the proposal, creditor approval, and whether any changes are needed later.
Does an IVA affect my credit file?
Yes. An IVA is a formal insolvency solution and will normally affect your credit file for 6 years from the date it starts.
Home, partner and income
Questions about family and household finances
An IVA is individual, but affordability is still assessed against your real household budget. That is why advisers may ask about shared bills, partner contributions, rent, mortgage payments, and essential living costs.
Your partner is not responsible for your sole debts because of your IVA, but shared finances may be relevant when your affordable payment is worked out.
An adviser may ask about household income and bills so creditors can understand what you can realistically afford.
Homeowners do not usually have to sell just because they enter an IVA, but equity can affect the proposal and needs case-specific advice.
Priority bills such as rent, mortgage, utilities, food, transport, and childcare should be considered before any IVA payment is proposed.
Debts and payments
What can be included?
Debt solutions treat different debts differently. Always check what is included, what stays outside the solution, and what happens if a creditor is missed.
Unsecured debts
Credit cards, personal loans, overdrafts, payday loans, catalogue debts, council tax arrears, and some HMRC debts may be included depending on the case.
Secured and priority debts
Mortgage payments, rent, secured loans, hire purchase, and other priority commitments need separate advice and should not be ignored.
Fees and costs
IVA fees are normally paid from the monthly IVA contribution and agreed by creditors. Make sure the proposal explains the fees before you sign.
Still unsure?
Use the answer to choose the next page.
If you already know an IVA may fit, use the free calculator. If you are not sure, compare debt options first. If you are dealing with enforcement, read the relevant rights guide before making a decision.
Free assessment
Check whether an IVA could fit your situation
The calculator is confidential and is designed to help you understand whether an IVA may be worth discussing further.