Debt Collection Help and Advice

What is an Individual Voluntary Arrangement (IVA)?

This is a formal arrangement to pay an agreed amount off your debts over a fixed period. This usually means paying an affordable monthly installment over a maximum of five years. The rest of the debts are written off. Some IVAs are set up on the basis of using a lump sum to make offers to the creditors rather than make monthly payments. Some IVAs are a mixture of both.


IVA stands for Individual Voluntary Arrangement. It is a legal process for UK residents with serious debt problems. To qualify for an IVA you must have unsecured debts of £15,000 or more.

It is a viable alternative to bankruptcy without the stigma and legal restrictions that are associated with going bankrupt. IVAs are arranged by insolvency practitioners who negotiate the terms of the agreement with creditors. A large proportion of the debt can be written off under the terms of the IVA and the rest paid off over five years.

IVA resources



Also see debt  consolidation

According to the Insolvency Service, there were 29,804 bankruptcies in the fourth quarter of 2006, 7.1% up on the previous quarter and 44.1% up on the corresponding quarter the previous year.

However, we believe that in many cases, the IVA, or Individual Voluntary Arrangement, can prevent bankruptcy.

Suitable for people with unsecured debts of over £15,000, an IVA can write off a large proportion of personal debt, the rest being paid off in affordable instalments over five years. Unlike bankruptcy there is no risk to assets with an IVA and there are no restrictions on doing business.

Also, an IVA freezes interest on the debt, prevents or halts legal action and wipes County Court Judgements (CCJs).

"The IVA is often preferable to bankruptcy as it avoids the serious financial penalties of going bankrupt."




Debt Collection Guides

Contact Debt Collection

To make an For more information about our debt collection service or to contact the agency please call 0800 445 11222