Individual Voluntary Arrangements (IVA)

An Individual Voluntary Arrangement (IVA) allows you to pay back a portion of your debts over 5-6 years while protecting your assets and avoiding bankruptcy. Our specialist IVA solicitors ensure you get the best possible arrangement with your creditors.

Quick Navigation

• [How much of my debt can be written off with an IVA?]
• [What are the eligibility requirements for an IVA?]
• [How does an IVA compare to bankruptcy?]
• [What happens if my IVA fails?]

What Our IVA Solicitors Can Help With

• IVA Applications: Complete preparation and submission of proposals
• Creditor Negotiations: Maximizing debt write-offs and minimizing payments
• Payment Plan Design: Affordable monthly payments based on your income
• Creditor Meetings: Representation at creditor voting meetings
• IVA Variations: Modifying arrangements for changed circumstances
• Asset Protection: Keeping your home and essential possessions
• Failed IVA Advice: Options when IVA arrangements break down
• Early Settlement: Completing IVAs ahead of schedule

How Individual Voluntary Arrangements Work

IVA Proposal Stage:

• Financial assessment and affordability calculation
• Insolvency Practitioner appointment
• Creditor list preparation and debt verification
• Proposal drafting with payment terms

Creditor Approval Process:

• Proposal sent to all creditors
• 21-day consideration period
• Creditor meeting (if requested)
• 75% creditor approval required by value

IVA Implementation:

• Monthly payments to Insolvency Practitioner
• Annual reviews of income and circumstances
• Creditor contact prohibition
• Completion certificate after final payment

IVA Eligibility and Requirements

Minimum Eligibility:

• Unsecured debts of £6,000 or more
• At least 3 different creditors
• Regular income from employment or benefits
• Spare income of £100+ per month
• UK resident or business connections

Ideal Candidates:

• Homeowners wanting to protect property
• Stable employment with regular income
• Professional people avoiding bankruptcy restrictions
• Those with assets worth protecting
• People facing creditor pressure but manageable payments

IVA Benefits vs. Bankruptcy

IVA Advantages:

• Keep your home and car
• No employment restrictions
• Can remain company director
• Lower stigma than bankruptcy
• Creditors cannot take further action
• Usually cheaper than bankruptcy

IVA Disadvantages:

• Longer commitment (5-6 years vs 12 months)
• Less debt write-off than bankruptcy
• Monthly payment obligations
• Annual reviews and potential increases
• Failure leads to bankruptcy risk
• Credit rating affected for 6 years

IVA Costs and Typical Outcomes

Setup and Administration Costs:

• Nominee fees: £3,000-£5,000 (usually included in payments)
• Supervisor fees: 15% of monthly payments
• Completion fee: £1,000-£2,000
• No upfront costs typically required

Typical Payment Scenarios:

• Monthly payments: £200-£800 average
• Payment period: 60 months standard
• Debt write-off: 70-80% typically
• Total repayment: 20-30% of original debt

Example IVA Outcome:

• Original debts: £40,000
• Monthly payment: £300 x 60 months
• Total paid: £18,000
• Debt written off: £22,000 (55%)

What Happens During an IVA

Monthly Obligations:

• Make agreed monthly payments on time
• Notify supervisor of income changes
• Seek approval for credit over £500
• Provide annual income and expenditure reviews
• Maintain reasonable living standards

Annual Reviews:

• Income assessment and payment adjustment
• Windfalls and bonus consideration
• Living expenses review
• IVA modification if circumstances change

IVA Failure and Alternatives

Common Failure Reasons:

• Job loss or reduced income
• Missing payments (3+ months typically)
• Breach of IVA terms
• Creditor rejection of variations

Options After IVA Failure:

• Bankruptcy (automatic in some cases)
• New debt management plan
• Individual creditor negotiations
• Return to original debt position

Why Choose SolicitorConnect for IVAs

• Specialist IVA Lawyers: Solicitors experienced in IVA law and procedure
• Creditor Negotiation: Maximizing debt write-offs and favorable terms
• Asset Protection Focus: Keeping your home and valuable possessions
• Realistic Assessment: Honest evaluation of IVA suitability
• Long-term Support: Guidance throughout the 5-6 year process
• Professional Networks: Connections with reputable Insolvency Practitioners

An IVA can provide significant debt relief while protecting your assets, but requires careful consideration and expert guidance to ensure the best possible outcome.

This information is for general guidance only and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified solicitor.