Individual Voluntary Arrangement (IVA) 


An Individual Voluntary Arrangement, or IVA, is a legally binding arrangement with your creditors. You can only apply for an IVA through an Insolvency Practitioner. You would usually make a monthly payment for between 60 and 72 months toward your debts. At the successful conclusion of the IVA your unsecured debts would be written off. 

Advantages & Disadvantages of an IVA

Advantages

  • Usually there are no upfront fees in an IVA
  • If you have assets these may be protected during the IVA
  • The creditors included in the IVA cannot continue to enforce their debt
  • Your Insolvency Practitioner will liaise with your creditors on your behalf 
  • You may not have to pay your debts in full subject to the terms of the IVA

Disadvantages

  • Your details will be listed on the Insolvency Register
  • Your credit rating will be negatively affected for 6 years
  • You cannot apply for any further credit during the IVA without the Supervisor’s consent
  • Certain debts cannot be included within an IVA such as Social Fund loans and court fines