Individual Voluntary Arrangement (IVA)

You propose to pay what you can afford, usually for five years. If creditorsHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more → representing at least 75% of the debt, by value, who vote agree, the IVAIndividual Voluntary Arrangement (IVA)An IVA is a legally binding agreement to repay a portion of your debts over a fixed period. Understand how IVAs work, eligibility, costs and consequences.Read more → binds all the creditors. Interest and charges are frozen and, once you complete it, the remaining unsecured debtUnsecured debtAn unsecured debt is borrowing that is not tied to an asset, so the lender cannot automatically take your home or car if you do not repay.Read more → is normally written off.

An IVA is recorded on the Individual Insolvency Register and your credit file, and it carries fees. Missed payments can lead to the IVA failing, and possibly bankruptcy, so it needs a stable income.