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How an IVA works

Find out what happens when you apply for an IVA, how it’s set up, and what to expect during the arrangement.

Get debt help 0800 316 1833

Applying for an IVA

Before you apply for any debt solution it is important you talk to a qualified debt adviser to make sure you are aware of all your options. Different solutions can help people in different ways dependent on your circumstances so it is recommended you have a unique assessment to see what option might be best for you. We offer free debt advice and have experienced advisers on hand to answer all of your questions.

If after talking to an adviser you decide you would like to apply for an IVA, we’ll connect you with an adviser for our associate company, PayPlan Partnership Limited. An IVA must be set up by a licensed Insolvency Practitioner (IP) and PayPlan Partnership Limited has qualified IPs that, with the help of their team, will assist you to set up your IVA.

The first step in the application process is to provide details of your finances and assets. An adviser will do an income and expenditure to find out how much you can reasonably afford to pay back to your creditors. They will also check you qualify for an IVA and whether this debt solution is the best option for you.  

See if an IVA is right for me

Setting up an IVA

The next step in the IVA process is to put together a proposal for your creditors. The IP will use your income and expenditure details to show how much you can afford to pay back to your creditors. If you are happy with your proposal, they will then get in touch with your creditors to request they consider your IVA proposal. Creditors will then have to vote whether to accept or reject your proposal – they have at least 14 days to decide and at least 75% (by value) of the voting creditors must agree. If you are struggling with your finances, creditors often see it in their best interests to accept the proposal and PayPlan Partnership Limited have a great record of getting IVA’s approved.

Once your IVA has been agreed, you’ll receive confirmation plus details of how you will make your payments. 

IVA Annual Review

It is important to check your IVA is going as planned and to make sure you can still afford the agreed payments, which is why an adviser will carry out annual reviews throughout your IVA. This involves checking your finances and making sure everything is still well with the agreement. Should you have any questions or concerns throughout your plan however you can contact an adviser at any point, who will be on hand to offer support and guidance. 

Learn More About IVA Annual Reviews

Failed IVA – what next?

If for some reason your IVA failed, there is no need to worry. We can still help you. We will talk you through other options and see what help is available. You won’t be on your own, our advisers are always on hand to help and support you.

Get help after a failed IVA

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
Table of contents

FAQs

What if I become seriously ill?

Please contact us as soon as possible. We know these conversations can feel difficult – but you’re not alone, and our dedicated Vulnerability Team is here to support you with care and practical guidance.

Your Insolvency Practitioner (IP) may speak to your creditors and request early completion of your IVA on compassionate grounds.

What happens if I come into money during my IVA?

If you receive a financial windfall – such as inheritance, compensation or lottery winnings – you’ll usually need to pay all of it into your IVA.

Because your creditors have agreed to write off part of your debt at the end of your IVA, any extra funds must be considered.

If the amount’s large, you may be able to offer an early Full and Final settlement.

If friends or family want to help with a lump sum, creditors may accept it as a settlement offer. It doesn’t have to cover everything you owe, but it must be fair and reasonable.

Can I settle my IVA early?

Yes – you can ask to offer a lump sum as a Full and Final settlement.

  • Your creditors will vote on the offer at a Variation Meeting.
  • Even if accepted, your IVA stays on your credit file for six years from the original start date.
  • It remains on the Insolvency Register for three months after completion or termination.

Early settlement can give flexibility, but you’ll still need to rebuild your credit after it completes.

Can I add debts to my IVA?
Because an IVA is a legally binding agreement, adding new debts can be difficult.

  • Forgotten debts: If a debt was missed at the start, it may still be possible to add it. Sometimes a second Creditors’ Meeting is required if the debt is significant.
  • New debts: If you’ve taken on new borrowing since your IVA began, contact us immediately. We’ll explain your options and what this means for your arrangement.
Can an IVA affect citizenship?
Your IVA will appear on the Insolvency Register, which may be visible during a citizenship assessment. It doesn’t automatically prevent approval – and in many cases, it reflects that you’re actively managing your debts responsibly.

Read more FAQs →

FAQs

What if I become seriously ill?

Please contact us as soon as possible. We know these conversations can feel difficult – but you’re not alone, and our dedicated Vulnerability Team is here to support you with care and practical guidance.

Your Insolvency Practitioner (IP) may speak to your creditors and request early completion of your IVA on compassionate grounds.

What happens if I come into money during my IVA?

If you receive a financial windfall – such as inheritance, compensation or lottery winnings – you’ll usually need to pay all of it into your IVA.

Because your creditors have agreed to write off part of your debt at the end of your IVA, any extra funds must be considered.

If the amount’s large, you may be able to offer an early Full and Final settlement.

If friends or family want to help with a lump sum, creditors may accept it as a settlement offer. It doesn’t have to cover everything you owe, but it must be fair and reasonable.

Can I settle my IVA early?

Yes – you can ask to offer a lump sum as a Full and Final settlement.

  • Your creditors will vote on the offer at a Variation Meeting.
  • Even if accepted, your IVA stays on your credit file for six years from the original start date.
  • It remains on the Insolvency Register for three months after completion or termination.

Early settlement can give flexibility, but you’ll still need to rebuild your credit after it completes.

Can I add debts to my IVA?
Because an IVA is a legally binding agreement, adding new debts can be difficult.

  • Forgotten debts: If a debt was missed at the start, it may still be possible to add it. Sometimes a second Creditors’ Meeting is required if the debt is significant.
  • New debts: If you’ve taken on new borrowing since your IVA began, contact us immediately. We’ll explain your options and what this means for your arrangement.
Can an IVA affect citizenship?
Your IVA will appear on the Insolvency Register, which may be visible during a citizenship assessment. It doesn’t automatically prevent approval – and in many cases, it reflects that you’re actively managing your debts responsibly.

Read more FAQs →

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Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
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