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Is an IVA worth it? Discover the pros and cons of an Individual Voluntary Arrangement, how much debt you need, and whether it’s the right solution for you.
September 4, 2025
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. It’s designed to help you manage your debts when they are unaffordable, by entering into an agreement with your creditors to repay all or part of your debt over the space of 5-6 years. You gain legal protection, providing you keep up your payments, and your creditors will stop chasing the debt and applying further fees and charges.
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How does an IVA work?
An IVA is a legally binding debt solution designed to help manage your finances. Once your creditors agree to its terms:
- They cannot take court action against you.
- They must stop chasing you for payments.
- They will no longer charge interest on your debts.
Which Debts Can You Include in an IVA?
An IVA can help with some debts, but not all of them. It’s important to know which debts can be included and which ones you’ll still need to pay separately. This will help you make the best decision for your finances.
- Council tax arrears
- Credit card debt
- Payday Loans
- HMRC debts
- Bank overdrafts
- Overpaid benefits
- Tax credit overpayments
- National Insurance debts
- Personal Debts, such as family or friends
- Arrears on utility bills, such as Water, Gas, or Electric bills
Which Debts Cannot Be Included in an IVA?
However, some debts cannot be included in an IVA. These are usually ‘secured’ debts, It’s important to keep up with these payments to avoid further financial difficulties.
- Mortgages
- Student Loans
- TV License Arrears
- Child Maintenance
- Unpaid VAT bills
- Court Fines
IVA Payments
An IVA involves a single, affordable monthly payment based on your financial situation. This payment is distributed among your creditors. Once the IVA is completed, any remaining debt is written off, allowing you to start a debt-free future.
If managing your debt feels overwhelming, an IVA could provide the structured solution you need. Take the first step towards financial wellbeing and find out if it’s the right choice for you.
How Long Does an IVA Stay on Your Credit File?
An IVA will stay on your credit report for six years, and your details will be added to the public Register of Insolvencies during the plan. However, it provides you with an excellent opportunity to clear your debts and move towards financial freedom.
Who is eligible to set up an IVA in the UK?
An IVA is open to residents of England, Wales and Northern Ireland.
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Frequently Asked Questions
An Individual Voluntary Arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. It’s designed to help you manage your debts when they are unaffordable, by entering into an agreement with your creditors to repay all or part of your debt over the space of 5-6 years. You gain legal protection, providing you keep up your payments, and your creditors will stop chasing the debt and applying further fees and charges.
Looking For More Info CLICK HERE
Applying for an IVA (Individual Voluntary Arrangement) isn’t as complicated as it sounds, but it does need to be set up by a licensed insolvency practice who employs or is owned by an Insolvency Practitioner.
Here’s how it works:
- Check if you qualify – An IVA is normally an option if you owe more than £7,000 to 2 different lenders
- Speak to an advisor – An Advice Centre Group advisor will go through your finances, we will look at your income and expenditure with you, go through each one of your creditors, explain your options, and confirm if an IVA is the best solution.
- Your proposal is prepared – If you decide to go ahead, the Insolvency Practitioner will put together a proposal. This outlines your debts, income, and what you can realistically afford to pay each month towards your debt, currently advice centre group is writing off upto 75% of debt for there clients, this is based on 12,270 clients upto February 1st 2025
- Creditors decide –The majority of the time it is companies you owe money to who will vote on the proposal. If at least 75% of the voting amount agree, your IVA will be approved.
- Begin your IVA – Once everything is in place, you’ll make one affordable monthly payment, usually for five or six years. After this, any remaining unsecured debt included in the IVA is written off.
The first step is simply applying with Advice Centre Group who can check your eligibility and guide you through the process from start to finish.
Apply Now CLICK HERE
An IVA should be done with you in mind, getting a loan during an iva means that something ha not been done properly to ensure that the IVA is fitting your income and expenditure.
Usually within an IVA you can get upto £500 you simply need to speak to us to inform us and let us know that your doing this, most common reasons are for white goods which we completely understand can happen.
the most important thing to remember is that we are there for you and with you, so dont be afraid to speak to us if your needing something urgently.
There are usually other options we can help you with to get the goods you need
When we propose IVA to a client their first concern would be ‘Can I get a Mortgage with an IVA?’. IVA and mortgages are closely connected and a common area of concern. While having an IVA does affect your credit score so does having a problem with debt. Unpayable debt will bring your credit score down and it will push the dream of getting a house further away than ever.
See our Post on IVA And Mortgages CLICK HERE
Applying for an IVA online with Advice Centre Group is simple and doesn’t take long. It all starts with a short form, Our Experienced IVA debt advisor looks your situation and explains whether an IVA is the right option for you. If it is, they’ll take care of contacting your creditors and setting everything up for you.
We have helped over 12000 clients see here what our clients say – CLICK HERE
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Call us – 0161 768 8403
Email us – Enquiries@advicecentregroup.co.uk
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
Advice Centre Group Ltd registered in England and Wales (14322979). Registered office: Second Floor A, Cheadle Place, Cheadle, Cheshire, England, SK8 2JX.
Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930
Insolvency Practitioner Directory- Insolvency Practitioner Details (bis.gov.uk)
What you need to know about Individual Voluntary Arrangements
(Insolvency Service)
We provide solutions to individuals throughout the UK, We Will help recommend solutions available to your circumstances in which you can then make an informed decision about which solution you qualify for is best for you and your circumstances.