Glossary of IVA Terms

Here’s a list of common terms you might come across if you’re thinking about applying for an IVA. We’ve explained each one in simple terms to help you feel more confident and informed.

Term	Definition
IVA	An IVA (Individual Voluntary Arrangement) is a formal agreement to repay your debts over five or six years. It can help you write off a portion of your debt. Learn more about IVAs here.
Interim Order	A court order that stops creditors from taking legal action while your IVA proposal is being considered.
Self-employed IVA	A version of an IVA designed for people who run their own business or complete self-assessment tax returns. It helps people manage personal debts while keeping their business running.
Bespoke IVA	A tailored IVA designed for more complex financial situations – for example, if you have ongoing supplier costs as a sole trader.
Bankruptcy	A legal debt solution where your assets may be sold to repay what you owe. Often seen as a last resort. Compare bankruptcy and IVAs here.
DMP	A Debt Management Plan (DMP) is an informal debt solution where you repay creditors in full with affordable monthly payments. It isn’t legally binding like an IVA. Compare DMPs and IVAs here.
Trust Deed	A formal debt solution available in Scotland – similar to an IVA but with different rules. You can learn more about Trust Deeds here.
Full & Final Settlement	An offer to pay a lump sum towards a debt, where the creditor agrees to write off the remaining balance if accepted.
Insolvency Practitioner (IP)	A licensed debt professional who manages your IVA. They communicate with creditors and ensure the arrangement is fair and compliant.
CVA (Company Voluntary Arrangement)	A formal agreement between a company and its creditors to repay debts over time, similar to an IVA but for businesses.
PVA (Partnership Voluntary Arrangement)	A formal repayment arrangement between a business partnership and its creditors.
Insolvency Act 1986	The main legislation that governs insolvency solutions, including IVAs, bankruptcy and more.
Insolvency	When you can’t afford to repay your debts as they fall due. IVAs and bankruptcy are both types of insolvency solutions.
Charging Order	A court order that secures a previously unsecured debt against your property, meaning the creditor could apply to force a sale.
IVA Chairman	The person responsible for overseeing the creditor vote on your IVA proposal. Often this is your IP or a representative from their team.
IVA Supervisor	Typically your Insolvency Practitioner. They manage your IVA once it’s approved and ensure all parties stick to the agreement.
Preferential Creditor	Creditors who must be paid before others if funds become available (e.g. some tax debts).
Arrears	Missed payments that you still owe, such as rent or utility bills. These often build up when you’re struggling with debt.
Assets	Anything you own that might have value – for example, a house, car or savings. Some assets may need to be declared in your IVA.
Joint and Several Liability	If you take out credit jointly with someone else, both parties are fully responsible for repaying the full debt – not just a half.
Proof of Debt Form	A form creditors fill out to confirm how much you owe them. This is used to calculate voting rights at the IVA creditor’s meeting.
Secured Debt	Debts linked to something you own – like a mortgage secured against your home. These aren’t usually included in an IVA.
Unsecured Debt	Debts not tied to an asset – like credit cards, overdrafts, payday loans and personal loans. These can be included in an IVA.
Time Order	A court-based tool that can change the terms of a credit agreement – for example, to freeze interest if a creditor won’t agree voluntarily.
Creditors’ Meeting	When creditors vote to approve or reject your IVA proposal. Usually done remotely – most creditors don’t attend in person.