FAQs

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.

• 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.

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.

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.

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.

Your creditors are likely to contact you still initially, but this should die down after a few months once they’ve updated their systems. You can let your creditors know we’re dealing with your debts and provide them with your PayPlan ID for reference. You’ll still receive important information about your accounts that they’re legally obligated to send you.

You’ll have our support every step of the way. Once you start your DMP, you’ll be looked after by our support team, who can help with any queries you have. They’ll keep in touch throughout your plan and complete a review with you every year.