Apply for an IVA

Potentially write off up to 85% of your debt and join the 1000s of UK customers we support.*

  • One affordable monthly payment
  • Potentially write-off debt**
  • Stop interest and charges
  • We’ll manage your creditors for you

*26% of MoneyPlus Insolvency customers who completed an IVA in 2023 wrote-off more than 85%. On average our IVA customers had a debt write-off of 72% as of Feb 2024. May not be suitable in all circumstances.

**Once completed, any outstanding debt included in the IVA will be written-off.

If you enter a solution with MoneyPlus we will charge you fees. If you do not enter a solution managed by us, there will be no fee for the advice that we provide. All fees and risks will be explained in full before you enter into a solution.

Reviews based on MoneyPlus Advice customers.

To discover more about how to manage your debt and to receive free debt advice visit www.moneyhelper.org.uk

How Can an IVA Benefit Me?

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to repay your debts over a fixed period. This arrangement aims to make your debt more manageable, offering a clear path to becoming debt-free.

For personalized IVA debt advice, our experts can guide you through the process and help you determine if an IVA is the right solution for your financial situation.

IVAs are not available for those in Scotland, but alternative debt solutions exist.

Once you enter an IVA, your creditors cannot contact you directly. All communication goes through your Insolvency Practitioner (IP).

After making repayments for a set period (usually five years), any remaining debt is officially written off. Learn more about How IVAs Work.

Is an IVA right for me?

Before an IVA David owed:

Overdraft£2,000
Loans£9,000
Credit cards£12,000
HMRC£2,000
Total debts£25,000
Total paid into IVA £11,400
Total fees paid£4,200
Total paid to creditors£7,000

£18,000

Total written off (72%)

The amount of debt written off is dependent on your circumstances. Payments are discussed with you at a level you can afford, subject to creditor acceptance.

Four Benefits of an Approved IVA

  1. Halts Interest and Additional Fees: An IVA stops your debts from accumulating more interest and fees.
  2. Combines Debts into a Manageable Monthly Payment: consolidating your debts cover in an IVA into one affordable monthly payment
  3. Get your finances back on track: If approved, all remaining debts include in an IVA will be written off after maintaining monthly payment over a set period (5 to 6 years)
  4. Offers Legal Protection from Creditors: Once approved, an IVA legally protects you from creditor actions.

When considering an IVA, it’s crucial to understand how it will impact your current situation and ensure you can manage the associated costs. Remember, an IVA will affect your credit rating and there’s no guarantee that creditors will agree to the arrangement.

Can an IVA Cover All Debts?

An IVA can cover most types of unsecured debts, such as credit cards, personal loans, overdrafts, and council tax arrears. However, there are some exceptions. Typically, an IVA will not cover mortgages or car finances agreements, as these are secured debts. Nor will it cover student loans, child support payments, court finds or TV licence arrears. For detailed advice on which of your debts can be included, consult with an Insolvency Practitioner (IP).

IVA Advantages and Disadvantages

Advantages

  • A substantial portion of your debt may be written off.
  • Manageable monthly payments.
  • Protection from bailiffs and other legal actions.
  • Creditors can only communicate with the IP.
  • No additional interest or fees will accrue.
  • The IVA is a legally binding agreement, providing security.
  • Major assets, including your home, are generally protected.

Disadvantages

  • Your credit rating will be negatively affected, and the IVA will remain on your credit file for six years from the start date.
  • Creditors may not agree to your proposed IVA plan.
  • An IVA only applies to those unsecured debts included in the plan.  Excluded debts will still require payments.
  • Your name will appear on the public Insolvency Register.
  • Non-compliance with the terms allows creditors to resume collection activities.
  • You must adhere to a strict budget for everyday expenses throughout your IVA.
  • You might need to release home equity. If this isn’t possible, your IVA period could be extended.
  • An IVA may attract higher rates for remortgages.

Are You Eligible for an IVA?

Our expert debt advisors are here to give you comprehensive information on debt solutions and the necessary qualifications. If you’re considering an IVA, here are the basic requirements:

  • At least £80 in disposable income each month
  • A minimum total debt of £6,000
  • Debts owed to at least two separate creditors
  • Residency in England, Wales, or Northern Ireland
Check if you qualify