How does an IVA work?

An IVA (Individual Voluntary Arrangement) can be an effective solution to serious debt. With an IVA you agree to pay your creditors only what you can afford, usually over a five year period. The creditors write off the rest of your debts so that at the end of the five years you are debt free.

Of course an IVA depends entirely on your creditors agreeing to this arrangement. Talk to the Debt Advice Trust to find out more about IVAs and other debt solutions.

Why your creditors might agree to an IVA

If your debts are so serious that there is a very real risk of you going bankrupt, this might mean your creditors could end up with nothing or very little at all. In these circumstances they may well agree to an IVA so that they at least get back more of their money.

Will an IVA work for me?

This depends on your individual circumstances. If you have debts in excess of £15,000, but are in regular employment, an IVA could be your best solution to getting out of debt. But there are still alternatives. Talk to the Debt Advice Trust so that you can get all the expert, honest and impartial advice you need to make your decision.

IVA FAQ's

• Q: How can I trust my IVA provider?

  A: If an IVA is the right debt solution for you, we can recommend a reputable and trustworthy provider from our Approved Panel whose advice will be free, and whose fees will be paid by your creditors.

• Q: Is an IVA similar to bankruptcy?

  A: No, an IVA actually saves you from bankruptcy and some of its major implications. Talk to us to find out more.

More IVA FAQ's