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How an IVA works

How an IVA works

If you’re thinking about an IVA it is useful to get a better idea about how it works. When you call PayPlan we will talk you through the IVA process, as well as the other debt solutions, but if you want to get a general idea of how an IVA works before you call, this page will be helpful.


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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.  

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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.

For more information about IVAs or to see what debt help is available for you, call us now on 0800 316 1833.

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*In the case of a one-off lump sum settlement

More Information on IVAs

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Sandra Daly

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

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