Individual Voluntary Arrangement (IVA)

What is an IVA? It is a formal agreement between you and your creditors. It is a fixed-term debt plan that legally protects you from your creditors.

An IVA freezes interest and cuts your monthly repayments to an affordable level. Better still, any debt left unpaid when the term finishes is written off. The exact amount of your monthly payment will depend on your circumstances but can start from as low as £70. If you are a homeowner, once your IVA is approved your home is protected. If you have a private pension this will also be protected. Typically an IVA will last for 5 years with you making an affordable monthly payment from your income into your IVA. Once your IVA has been fully approved, you don’t need to worry any more about your creditors contacting you. Once the final IVA payment is made, you are no longer be liable for any of the debts included in your IVA and there will be no further balance to pay, even if this means your debts have not been repaid in full.

What an IVA could do for your finances

The debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors. The example provided of 80% has been achieved by 10% of our customers in the last 12 months

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One of our friendly IVA team members will be in touch soon. We are fully trained to provide you with all the information you need on the options available to you. There is no obligation to proceed and you can opt-out at any time.
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This allows us to help you find the right solution for your circumstances and individual needs.

Why Choose Bennett Jones for an IVA?

Bennett Jones has helped thousands of people solve their debt problems. Listening to every story with empathy and understanding, we offer debt help that is tailored to your personal circumstances.

An IVA stops creditor pressure and writes off debts you can’t afford. No more text messages, emails, letters, phone calls, or home visits from your creditors. The IVA team at Bennett Jones will work closely with you on your journey to financial recovery. An IVA can help you break free from the stigma of debt.

An Individual Voluntary Arrangement (IVA) is not suitable for everyone who needs help with their debts. If an IVA is not right for you we will give you free no obligation help so you can decide on the solution you need.

What is an IVA?

An IVA is a legal agreement between you and your creditors. It is established and overseen by a Licensed Insolvency Practitioner, who acts as the mediator between you and your creditors. The exact amount of your monthly payment will depend on your circumstances but can start from as low as £70. If you are a homeowner, once your IVA is approved your home is protected. If you have a private pension this will also be protected.

It is realistic to expect to write off between 25% and 75% of your debts in an IVA. The debt write off amount will depend on your circumstances and is subject to your creditors approving your proposal. Your monthly IVA payments may be different to the example as they will be based on your personal circumstances. All fees and costs of your IVA which will be paid from your monthly IVA payments will be clearly explained to you.

Typically an IVA will last for 5 years with you making an affordable monthly payment from your income into your IVA. Once your IVA has been approved, you don’t need to worry any more about your creditors contacting you.

Your insolvency practitioner who supervises your IVA will deal with all your creditors. Once the final IVA payment is made, you are no longer liable for any of the debts included in your IVA and there will be no further balance to pay, even if this means your debts have not been repaid in full.

To be eligible for an IVA, you need to show that you do not have enough money to pay your debts in a reasonable amount of time. In most cases, your debts must be more than your assets, including any property you own. You also need to have some surplus income each month after paying for your living costs. When you talk to Bennett Jones about an IVA or other debt solutions, we make sure that you are aware of all the possible solutions for your situation. You will be able to make the best choice for your circumstances. If you decide an IVA is right for you, we will support you on your journey to financial health.

We understand how difficult it is to cope with unmanageable debts and the stress and worry this causes. Bennett Jones is here to help you explore all the options for you to regain control of your finances and become debt-free.

IVA steps and timing

Step 1

Contact the IVA team at Bennett Jones

Our IVA team is waiting to help you decide if an IVA is the best option for your circumstances

Step 2

We perform a credit check and assess all your debts.

This credit check will not affect your credit score

Step 3

Gathering your financial information

We gather detailed information regarding your regular expenses (rent, travel, food, utility bills, etc.) and make an assessment of how much you can reasonably afford to pay back each month after paying these expenses.

Step 4

Building your IVA proposal

Our Insolvency Practitioner will create your draft IVA proposal to present to your creditors. It will include a detailed financial breakdown of your current circumstances and proposed repayment terms. Your proposal will explain why your creditors should accept your IVA.

Step 5

Your creditors consider your IVA proposal

Our Insolvency Practitioner finalises the proposal with your agreement and calls a “virtual” creditors’ meeting. Each of your creditors can vote on your proposal. To have an IVA agreed, you will need 75% in value of your creditors who vote at the meeting putting in votes to approve your proposal.

Step 6

IVA Approval

You’ll formally enter into your IVA and immediately become protected against all debt recovery action.

Step 7

Annual Review of Your IVA

Your Insolvency Practitioner will conduct a review each year to ensure you’re still able to make your payments. If your income has increased you may be requested to increase your IVA payments. If you are struggling to manage your payments we will be here to help you.

Step 8

Become debt free

As long as you keep to the terms of your IVA proposal, your remaining debt will be written off at the end of your IVA. You will then be debt-free.

To qualify for an IVA, you need to be a resident of England, Wales or Northern Ireland. You will also need to have a minimum debt level of £6,000. You must owe money to at least 2 companies. You will need to have some surplus income after paying your living expenses so that you can afford to make payments into your IVA.

All IVAs must be arranged through a licenced insolvency practitioner and that is where Bennett Jones steps in. If you qualify for an IVA, you could be on your way to writing off your seemingly unaffordable debts, setting you up for a debt-free future.

IVA is short for Individual Voluntary Arrangement and DMP is short for Debt Management Plan. IVAs allow you to write off a large proportion of your debt and they are legally binding on your creditors. A DMP is not legally binding – it is simply an informal agreement between you and some or all of your creditors. This means that if you are in a DMP your creditors can still take legal action against you and continue to contact you directly.

In England and Wales, an Individual Voluntary Arrangement (IVA) is a formal alternative for individuals wishing to avoid bankruptcy. In Scotland, the equivalent debt solution is known as a Protected Trust Deed.

Once an IVA is agreed upon, creditors are forbidden from contacting you directly to attempt to obtain funds. Whilst they usually receive a larger payment than they would with bankruptcy, you benefit from frozen interest/fees and manageable payment structures. What is more, with an IVA, you only pay what you can afford, even if this means you do not pay your debts in full.

Breathe easier with an IVA thorough Bennett Jones today

Our team at Bennett Jones has many years of experience in dealing with creditors and administering IVAs. We are here to provide support and guidance for you at a time when you need it most. If you believe an IVA may be the best solution or you would like to learn more about what the process entails, our experts can provide you with confidential advice completely free of charge. There are lots of ways to contact our IVA team: