Key points about an IVA at a glance
- Legally binding – Once approved, creditors can’t take further action as long as you stick to the terms.
- Not a guarantee – Your IVA is only approved if at least 75% (by value) of voting creditors agree.
- One monthly payment – You pay a single, affordable amount each month – based on your budget – for up to five or six years.
- Debt write-off – Any remaining unsecured debt is written off when your IVA is successfully completed.
- Fees included – All setup and management fees are built into your monthly payment – no extra charges.
- Property protection – If you’re a homeowner, you may be asked to extend your IVA by 12 months rather than release equity from your home under the 2025 IVA Protocol[1].
- Credit rating – Your credit rating will be impacted for six years from the start of the IVA.
- Insolvency Register – Your name will be added to the Insolvency Register for the duration of the IVA plus three months after completion.
- Available in England, Wales and Northern Ireland (if you reside in Scotland, a Trust Deed is a similar solution to an IVA).
[1] The 2025 Protocol only applies for IVAs approved after July 2025. Previous IVA Protocols apply for IVAs approved before then.
Do I qualify for an IVA?
Before recommending an IVA, we’ll carry out a free, confidential assessment of your financial situation to check if it’s the right option – or if another solution might work better. If you’re eligible for an IVA and you choose to go ahead, we’ll refer you to one of our sister companies, who will explain the IVA process in detail, your responsibilities and the fees included.
See if an IVA is right for meWhat debts can be included in an IVA?
An IVA can include most unsecured debts, such as:
- Credit cards
- Personal loans
- Overdrafts
- Payday loans
- Store cards and catalogues
- Council tax and utility arrears
Some debts can’t be included, such as:
- Mortgages or secured loans
- Student loans
- Court fines
- Child maintenance or CSA arrears
How much debt is written off in an IVA?
This depends on what you can afford to repay.
Example:
You owe £20,000 and can afford to pay £100 a month. Over five years (60 months), you’d pay £6,000 in total into your IVA. This amount covers:
- What your creditors receive.
- The fees for setting up and managing the IVA.
At the end of the arrangement, any remaining unsecured debt is written off. In this example, that’s around £14,000.
Just remember:
- The amount you repay is based on what you can afford, not the total amount you owe.
- The fees for an IVA are included within your agreed monthly payments, so you won’t pay extra.
Can my payments change in an IVA?
Yes, your IVA is flexible if your circumstances change.
- If your income increases, your monthly payment may increase too – reducing the amount written off.
- If your income drops, your payments may be lowered – and you may write off more debt as a result.
You’ll complete an annual review to ensure your payments remain affordable.
How is an IVA set up?
- One of our advisors will assess your situation and explain your options.
- If an IVA is right for you, we’ll refer you to one of our sister companies, who are licensed IVA providers – either PayPlan Partnership Ltd or PayPlan Bespoke Solutions Ltd.
- Your Insolvency Practitioner (IP) will prepare a Proposal and present it to your creditors.
- Your IVA will start if creditors holding at least 75% of the debt value (who vote) approve it, and you also agree to your IVA being approved.
Thinking about an IVA but unsure what’s right for you?
Get free debt advice online or call 0800 316 1833 to speak to one of our experts. We’ll explain the solutions available, check what you may be eligible for and help you choose the option that best fits your situation.
See if an IVA is right for me