What is an IVA
An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.
An IVA can give you more control of your assets than bankruptcy.
How to set up an IVA
You have to use an insolvency practitioner (use ‘Kent’ as a town to obtain a list) to get an IVA. Ashford Advice do not have an insolvency practitioner
Your insolvency practitioner works out what you can afford to repay and how long the IVA lasts. You’ll have to give details about your financial situation, for example your assets, debts, income and creditors.
Your insolvency practitioner will contact your creditors. The IVA will start if the creditors holding 75% of your debts agree to it. It will apply to all your creditors, including any who disagreed to it.
An IVA will stop your creditors taking action against you for your debts.
Cost of an IVA
There are usually 2 fees:
- a set up fee
- a handling fee each time you make a payment
Make sure you know how much it’s going to cost before asking an insolvency practitioner to act for you.
Effect on your credit score
Your IVA will be added to the Individual Insolvency Register. It’s removed 3 months after the IVA ends. Lenders use the information in your credit report to judge whether you are likely to keep up repayments on a loan and, therefore, if they should offer you credit. An IVA will be listed on your credit report for six years after the point at which it begins, or until it is completed if that is not within six years. This sends a serious signal to potential lenders that you have had trouble paying your debts and that there may be an increased risk of lending to you.
Last Updated on June 10, 2026 by Ashford Advice