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FAQs

IVA (Individual Voluntary Arrangement)

Our FAQs answer the most common questions about how IVAs work so you can decide with confidence whether this solution is right for you.

What happens if I can’t keep up with payments?

If you’re struggling, contact us straightaway. We may be able to:

  • temporarily reduce your payments · give you a payment break
  • explore other options

It’s important to note that if we reduce your payments or give you a payment break, the term of the IVA may be extended.

If you stop paying without speaking to us, your IVA could fail and creditors may resume contact – so reaching out early is always the best approach.

Will I pay the same amount every year?
You’ll have an annual review to check your income, spending and overall circumstances.

  • If everything stays the same, your payment is likely to stay the same.
  • If things change, your payment may be adjusted to keep your IVA affordable and fair.
How does an IVA affect my credit rating?

An IVA will appear on your credit file for six years from the date it begins. It will be added to the Insolvency Register and removed three months after completion of the IVA.

Will my partner be affected by my IVA?
Your IVA is individual to you.

  • If your partner isn’t named on any debts, they aren’t responsible for them.
  • Payments are based on your income, not theirs (unless your partner agrees to contribute to your IVA payments).
  • Your essential household assets, such as your home and car, are protected if you follow the terms of your arrangement.
How long does an IVA last?

Standard IVA

  • Typically lasts five to six years.
  • If you own property with more than £10,000 equity, your IVA may be extended for 12 months.
  • If you don’t own property or have less than £10,000 equity, your IVA usually ends after five years.

Full and Final IVA

  • If you have access to a lump sum (for example, from a property sale or family contribution), you may be able to settle your IVA early.
  • These arrangements usually complete within 12 months.
What debts can I include in an IVA?

Most unsecured debts can be included, such as:

  • Credit cards
  • Loans and overdrafts
  • Payday loans
  • Store cards
  • Council tax arrears

You can’t include secured debts (e.g. mortgages), student loans, child maintenance or court fines. These are treated separately to your IVA payment in your budget so you can keep making payments to them as normal.

How does an IVA work and what does it include?

An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors. It helps you repay your debts in a structured and affordable way.

Here’s how it works:

Protection from creditors

  • Once your IVA is approved, interest and charges on your included debts are frozen.
  • Creditors included in the IVA can’t chase you for payment or take legal action.

Affordable payments

  • Your monthly payment is based on what you can afford after essential living costs.
  • We’ll work with you to complete a detailed budget review to find your surplus income.
  • If you’re a homeowner, your IVA may be extended by 12 months, depending on how much equity you have. 

Communication handled for you

  • We prepare and submit your IVA proposal to your creditors.

  • Once approved, we manage ongoing creditor communication and distribute your monthly payments.

Debt written off at completion

  • When you successfully complete your IVA, any remaining unsecured debt included in the arrangement will be written off.