What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal, legally binding insolvency solution available in England and Wales. It is set up and managed by a licensed Insolvency Practitioner, who is regulated to carry out that work.
In general terms, an IVA involves paying an agreed monthly amount over a set period, commonly around five years. If the terms of the arrangement are met in full, any remaining unsecured debt covered by it may be written off at the end. Whether an IVA could be available to you, and what any payment might be, depends entirely on your individual circumstances.
An IVA is not right for everyone. It carries conditions and long-term consequences, including an entry on your credit file and on the public Insolvency Register. Not all debts can be included, and an arrangement that is not kept to may fail.