Personal Individual Voluntary Arrangements – (IVA)

What is a Personal Individual Voluntary Arrangement?

Personal Individual Voluntary Arrangements are legal, binding agreements between you (debtor) and your creditors’ as an alternative solution to bankruptcy.

Your creditors’ will include all your business liabilities if you have any (including HMRC) and any other personal debts that you have, such as credit card debt or bank loans.

Personal guarantees can be included as unsecured debt.

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This tailored plan replaces all your current payments (to unsecured creditors’) with one affordable payment, suited to your individual financial circumstances and is usually paid over a five year period.

Monthly repayments can start from as low as 150 pounds, which is usually much less than existing minimum payments on credit cards and loans.

1. We would liaise directly with your creditors’ and make distributions to creditors’ directly.

2. Any calls from creditors’ can be referred to us.

3. We will work together with you to draft your proposals to creditors’.

4. Once your proposals have been finalised a meeting of creditors’ will be called.

5. At that meeting it will be necessary for in excess of 75% of the voting creditors’ to approve the proposals for them to be accepted.

6. In practice, creditors are unlikely to attend the meeting and the voting is done by correspondence.

7. The amount paid to creditors’ is split proportionally, depending upon the amounts due to each of the creditors’.

8. It may be possible to continue your business if this is a viable business, depending on your individual circumstances.

9. Depending on the equity in your property it may be possible to protect your home as this part of the agreement.

10. At the end of the Personal Individual Voluntary Arrangement term any unpaid debt is written off as part of the agreement and you have a debt-free fresh start.


An IVA can only be done through a Licensed Insolvency Practitioner.

If you have unsecured debts of at least 15,000 pounds, have a regular household income, and live in England, Wales, or Northern Ireland, an IVA may be the option for you.

The IVA normally stays on your credit history for one year after your IVA ends.

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