An Individual Voluntary Arrangement or IVA is a legally binding contract between a debtor and their creditors, supervised by a licensed insolvency practitioner to repay your creditors at an amount you can afford on a monthly basis over 5 or 6 years. When the final payment is made, any remaining debt is written off.

Pros & Cons of an IVA


  • Consolidate all of your unsecured debts
  • Fixed 5 year term (can be 6 if you are a home owner)
  • Freeze your interest and charges
  • Protects from creditors
  • Confidential procedure
  • Prevents bankruptcy
  • Reduce your monthly outgoings in line with what you can afford
  • Protects your home from creditors if you are a homeowner
  • Stop letters and phone calls from your creditors

Things to consider

  • Legal binding you will be tied into the agreement for the full term.
  • Your details will be recorded on a public register.
  • At least 75% of creditors must agree to the IVA. Creditors aren’t legally obliged to agree.
  • You will not be able to get additional credit of more than £500 without your supervisor’s consent
  • Homeowners will need to look into releasing equity from their home
  • Failure to comply with the IVA may lead to bankruptcy
  • Your credit file may be affected for six years
  • Certain debts will still be outstanding.

To find out more, simply call us today on our free phone number 0121 325 3800 or fill in the call back form and we’ll call you back.


Fees are payable with an IVA solution. Back2credit will pass you through to one of our trusted partner companies and we will be paid a fee should you take up any IVA solution with them. Read more here

Is an IVA right for you?