Unsure of an IVA? have a look at all the IVA FAQs on this page. Are you currently struggling with debts and looking for a possible solution to take back financial control? Are you in England, Wales, or Northern Ireland? See below our frequently asked questions on Individual Voluntary Arrangement, please note it is important to receive tailored debt advice. Need help choosing a solution to resolve your debts? we can do that for you by clicking the button below.

Most Common FAQs

How much debt do I need to get a IVA?

In order to qualify for a Individual Voluntary Arrangement (IVA) you would need at least £6,000 of unsecured debt, however, this could be joint debts with you and a partner or household adult.

Can I get an IVA if I have a mortgage?

Yes! There are many fears from clients that speak to us for debt advice that if they own their home and pair a mortgage they may lose their home by taking an Individual Voluntary Arrangement (IVA). The truth is your debt advisor will only propose the Individual Voluntary Arrangement (IVA) if they can protect what you currently have or want to keep, so should you have less equity in your home than the debt you could still be insolvent which qualifies you for a Individual Voluntary Arrangement (IVA).

If you were to have more equity in your home or have paid your mortgage off then an Individual Voluntary Arrangement (IVA) would not be a good solution for you and our advisors would cover other solutions.

I’m I going Bankrupt by getting a IVA?

No! When taking a Individual Voluntary Arrangement (IVA) it is not as strict as Bankruptcy. the main differences are that with Bankruptcy there is a registration fee, which can differ from country to country in the UK, England, and Wales – £680 then in Northern Ireland £676 and in Scotland – £200 (Sequestration). You may not hold any official positions of local authority or government, any equity in your home at all could be at risk, the stigma that comes with bankruptcy and you may not be able to keep certain things you use on a month-to-month basis.

As always speak to a debt advisor about the restrictions it may cause you.

Can I get a IVA if a have a guarantor loan?

Yes! Getting an Individual Voluntary Arrangement (IVA) must take in all debts so there is no preference to your creditors. When taking a guarantor loan into an Individual Voluntary Arrangement in Scotland the person that is tied to the loan with you will be pursued for the debt unless they also take a solution to resolve their debts or the loan is continued to be paid by them.

Can I keep my car on Hire Purchase or PCP in a IVA?

Yes! Keeping a car for vital commuting or travel to work is permitted in the Individual Voluntary Arrangement (IVA)! The only way you would then lose the car is if contractual payments were not met.

What debts can I include in a IVA?

Any that are unsecured really. Loans, credit cards, and store cards. You can also include overdrafts, catalogues, and utility bills. Even communication bills such as mobile contracts. Child maintenance arrears, rent arrears, council tax arrears, DWP debts, debts with HMRC, debt with your local council, mortgage or hire purchase shortfalls, and much more!

Debts that cannot be included are – Mortgages or hire purchases if you still have the items

Can I get a IVA if I am unemployed?

Yes! A Individual Voluntary Arrangement (IVA) would normally only be a good solution if you have enough disposable income to cover your contributions after your essential expenses have been taken into consideration, always get tailored debt advice to check your best solution.

If you are unemployed and receiving benefits only it is still possible however you may also qualify for a Debt Relief Order (DRO) too

How much debt can I write off with a IVA?

Adverts are widely known in the market to write off up to 90% of your debt. With an Individual Voluntary Arrangement (IVA), however, to be realistic whatever debt you cannot afford to pay back within your plan is written off. Depending on your affordability and debt level, the more debt you have the more you are likely to write off

Does a IVA stop an earning arrestment?

Yes! Any current or future pending arrestments on your earnings will be stopped. With an Individual Voluntary Arrangement (IVA), it allows you to keep your earnings when you are paid. You will make one affordable monthly payment to the Individual Voluntary Arrangement (IVA).

However, any debts accrued after your Individual Voluntary Arrangement (IVA) is in place will have the right to put an earnings arrestment on you should you fail to comply with them.

Will a IVA stop legal action from my creditors?

Yes! All legal action will be prevented with an Individual Voluntary Arrangement (IVA). Ask your debt advisor on current legal proceedings to see if it could be too late.

Will I get evicted if I include rent arrears in a IVA?

No! We would never propose a solution where this would be the case unless requested. We would always ensure that the Individual Voluntary Arrangement (IVA) would not be proposed unless it was keeping secure what you needed to be protected.

Will my details be stored?

Yes, if you successfully enter an IVA your details will be logged on the Insolvency register. Thanks for taking the time to read through the IVA FAQs, if there are any questions you have that have not been answered please get in touch.