Consumer Money Worries - Personal Debt

Browse our support and services for consumers who are struggling with personal debt

Individual Voluntary Arrangement

An Individual Voluntary Arrangement, otherwise known as an IVA, is a legally binding arrangement between you (the debtor) and the creditor.

The IVA was introduced in 1986 as an alternative solution to bankruptcy, enabling the consumer to repay what was affordable over a fixed term.

Albeit the IVA is a form of insolvency, it is not deemed as intrusive as bankruptcy simply because the debtor is offering to give something back.

How will the IVA benefit me?

  • The IVA enables you to reduce your monthly payments down from the contractual payments to what is affordable for you.
  • The interest & charges are legally frozen from day one.
  • The creditors have to leave you alone while you pay back what is affordable
  • All pending legal action suspended.
  • You and your assets are legally protected.
  • At the end of the agreed term, all outstanding debts written off
  • You have a clear light at the end of the tunnel of debt freedom

Will it affect my credit rating?

A credit rating is often impacted by missed payments and or reaching your credit facility.

If either three payments have missed or reduced, the chances are the creditor will have put a default notice against the credit file.

If you have reached your level of the lending facility, you will likely be refused for credit.

Do you want to become debt-free, or do you want to continue taking out credit?

In the event of an IVA being accepted by creditors, you are asked not to take any further credit or use any available credit.

As you are offering the creditors reduced payments and requesting that the interest and charges are frozen, the creditors do reserve the right to issue a default notice on your credit file.

Can I repair my credit rating and buy a home?

The short answer is, yes!

Once you have completed the IVA, you will have a further 12 months for default notices to be removed from your credit file.

Can I set an IVA up on my own?

No, an IVA must be administered by a Licensed Insolvency Practitioner who will manage your IVA for its duration, so you don’t have to.

Can I settle my IVA early?


If you come into a sum of funds that will enable you to settle the IVA, the Insolvency Practitioner will present the offer o the creditors; it is then at the creditor’s discretion.

Why should I opt for an IVA over bankruptcy?

An IVA is an alternative to bankruptcy, allowing you to pay something back and protect your assets.

If you have a property with equity in it and opt for bankruptcy, there is a chance you may lose that asset, whereas, with an IVA, the asset is legally protected.

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