IVA (Individual Voluntary Arrangement)

An Individual Voluntary Arrangement (or IVA) is an official debt repayment plan that in most cases includes the freezing of interest, reduction in the total amount of debt owing, and legal protection from creditors as long as the terms of the IVA are adhered to.

An IVA differs from an informal debt management arrangement with creditors because:

• An IVA is legally binding; it must be legally approved and supervised by a licensed Insolvency Practitioner. Whilst within the IVA, as long as the agreed payments are made you will be protected from further interest and any legal action. The IVA binds both yourself and your creditors to adhere to the agreed arrangement.

• Part of the IVA process is that an agreed portion of the total debt is usually ‘written off’ at the end of the IVA. The amount depends on the total amount that you owe to creditors and can be up to 75%.

Our advisers can initially assess, based on your financial circumstances (also referred to as your ‘Statement of Means’ or ‘Financial Profile’), whether an IVA is the right option for you. We will provide no-cost, unbiased consultation to determine the best solution to your debt problem.

IVA debt reduction calculator

If you would like to work out how much you could save every month and how much of your debt you could write off by entering into an IVA, use our free online IVA debt reduction calculator.

What steps are involved with an IVA?

If it is determined that the IVA route is the most appropriate solution for you, then you will be referred to an IVA consultant, who will initiate the IVA process. Although an IVA is a legal process, and as such involves considerable preparation work, our aim at Loans Company is to keep any involvement by yourself to an absolute minimum, that means no paperwork, no forms and no need to deal with the court or creditors yourself.

The IVA involves these steps:

• Preparation of your Financial Profile - This process will take around 30 minutes and will be conducted over the phone by your IVA consultant. The IVA consultant will create a profile of your financial affairs in order to create your IVA proposal.

• Interim Order - Your consultant will apply to the local court for an Interim Order on your behalf. This will prevent any further action from creditors whilst the proposal for your IVA is prepared. The Interim Order will remain in effect until your IVA proposal is presented to creditors.

• Meeting of Creditors - The proposed IVA and Statement of Affairs is presented to your creditors for consideration. Once approved, the IVA will begin and both you and your creditors must comply with the terms of the IVA.

A licensed Insolvency Practitioner will act as your IVA supervisor and deal with any problems that may arise during the IVA.

From here forward as long as you comply with the agreed IVA you will only need to make a single, affordable payment each month, which will be divided amongst your creditors. No further interest will be incurred and at the end of the IVA a portion of the debt will be written off and you will be clear of debt.

Take control of your debt problems today

We help people from all walks of life to resolve their debt problems every day and understand that debt issues are extremely sensitive and highly personal. Your debt advisor is not here to judge you and you won't be made to feel like a criminal. By completing our simple online enquiry form you will receive sympathetic, professional advice without any obligation.

The information, services and products on this web site are intended for use by residents of the United Kingdom only. Your loan advisor will review your past credit history and other personal details, and the actual rate offered may be higher depending on your personal circumstances and, for secured loans, the equity in your property. By repaying your borrowing over a longer term, your overall interest charges will increase. The actual rate available for any product will depend upon your circumstances. Ask for a personalised illustration.