What is an IVA?

An Individual Voluntary Arrangement is an alternative to bankruptcy and is basically a legally binding contract between you and your creditors.

It involves one affordable monthly repayment, known as a voluntary contribution, to your creditors, usually for a period of sixty months.

The amount you can afford to repay is determined by your financial circumstances and a minimum monthly repayment of £200 is usually required.

How do I know how much I owe to my creditors?

You need to look at all of your debts, which may include personal loans, student loans, credit and store cards and overdrafts.

These are all unsecured debts and can be included in a Voluntary Arrangement.

Excluded debts are usually secured on either your home or vehicle e.g. mortgages and hire purchase agreements.  These cannot be included in a Voluntary Arrangement and the repayments must be maintained.

All of your debts will be looked at carefully if you choose to go ahead with an Individual Voluntary Arrangement.

How much will I have to pay my creditors?

By clicking on the calculator below, you will be able to enter the amount you owe and calculate the minimum repayment you would have to make.

Please note that this calculation is only to give you an idea of your financial circumstances and will not result in any decisions being made in respect of the level of voluntary contributions that are affordable.

Click on calculator to display minimum repayment calculation form.

Will I be able to repay my creditors?

Click on calculator to display income & expenditure calculation form.

Am I eligible for an Individual Voluntary Arrangement?

This can only be established once a thorough review of your financial circumstances has been carried out.

What can I expect from an Individual Voluntary Arrangement?

• One affordable monthly voluntary contribution to your unsecured creditors.

• A fixed repayment term, usually for a period of sixty months.

• All fees and costs will be included in your monthly voluntary contributions.

• Interest and charges cannot be applied to the debts that form part of your arrangement.

• The stigma associated with bankruptcy does not apply as your arrangement will not be advertised in any local newspapers

• Once all the voluntary contributions, and any other requirements that may be applicable, are met you will be completely free of your unsecured debts.

• Once your Individual Voluntary Arrangement is agreed, creditors cannot alter the terms or duration.

• You can enter into an arrangement if you are an individual that has a regular household income, including benefits and pensions.

• Individual Voluntary Arrangements can be combined for spouses and partners, which can reduce the overall fees and costs.

• We will deal with all of your creditors directly and this will stop all of the phone-calls, letters and personal visits.

• There is no requirement to inform your employer of the arrangement and therefore it is particularly suitable for many professionals and members of the civil service.

• The Individual Voluntary Arrangement will be registered at the Insolvency Service and this will appear on any credit search preventing you from obtaining further credit.

• Your credit rating will not be automatically ‘fixed’ at the end of your arrangement.  Your credit rating must be built up again once your arrangement has been completed.

• If you have property, you may be required to look into the amount of equity that is present at some point during the arrangement.  Any available equity may have to be realised for the benefit of creditors by way of re-finance or sale of the property.

• Creditors may ask that any additional income over that originally agreed is introduced into the arrangement in addition to your voluntary contributions.

IN THE UNLIKELY EVENT THAT CREDITORS DO NOT ACCEPT YOUR PROPOSED VOLUNTARY ARRANGEMENT, YOU WILL NOT HAVE TO PAY ANY FEES WHATSOEVER.