Why choose an Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement (IVA) is a type of debt solution that allows you pay all or part of your debts. It’s a formal agreement with your creditors that involves making one, affordable monthly payment to all of your debts, usually for five or six years.

If your IVA successfully completes, all unsecured debts included in your IVA such as credit cards, personal loans, catalogue debts etc are written off and you will no longer be liable to make any further payments towards them.

Here’s how it works:

• We’ll start by going through your budget to look at your income, outgoings and debt level to see how much money you have leftover each month to pay towards your debts.

• If an IVA is the right solution for you, we will agree an affordable monthly payment based on your budget. This information will then be transferred to one of our sister companies – PayPlan Partnership Limited for IVAs and PayPlan Bespoke Solutions for Self-Employed IVAs who will manage the IVA process for you.

• Your offer will be sent to your creditors in the form of a proposal. Once they have reviewed the offer of payment, the creditors will then vote yes or no to accept the proposal.

• If at least three-quarters of the creditors (by debt value) vote agree to the proposal, then it becomes a legally binding contract.

• As part of the contract, you will make your affordable monthly payment – usually for five or six years – and at the end, the debts included in your IVA are written off. 

• Your creditors are also bound by the contract, so as long as you keep to your payment schedule and make all of your payments, the people you owe money to cannot take any further legal action against you and cannot send payment demands.

• An IVA is only available if you live in England, Northern Ireland or Wales. If you live in Scotland, you can apply for a Trust Deed.