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The Bankruptcy Service - Individual Voluntary Arrangements (IVAs)

If you'd like to know more about IVAs, then please read on. The solution we propose for you depends on many factors however, so please complete the debt test so we can help further.

An Individual Voluntary Arrangement is a legally binding agreement, for the satisfaction of debts, either in full or in part, which is binding on all unsecured creditors. It is a way of avoiding bankruptcy, but still involves a formal insolvency procedure. Agreements often last for a five-year period.

An IVA must be processed using a licensed Insolvency Practitioner. Whilst the appeal of avoiding bankruptcy is obvious, anyone considering this option should consider other options too fully before making a decision.

Advantages of an IVA:

  • Interest and charges will be frozen on your debts.
  • Debts you are not in a position to repay can be written off.
  • Avoid bankruptcy.
  • The opportunity to reduce your monthly repayments.
  • Reduce contact with creditors, much of it unwanted.

Disdvantages of an IVA:

  • The IVA process is a long one, and throughout your credit rating will be negatively affected, often for an extra year after the IVA is completed.
  • Not all debts can be covered by an IVA (for example fines).
  • Failure to keep to the terms of the agreement could lead to bankruptcy.
  • Equity in a property may have to be released to help payments – by remortgaging the property.
  • Other assets may have to be sold to help with repayments.
Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.