How to Apply for an IVA
Thinking about an IVA? The first step is simple: speak to a qualified debt adviser who can check whether it’s right for you.
See if you qualifyIf you’re thinking about applying for an IVA, you’re probably struggling with debt and want a clear way forward.
Where do I start my IVA application?
You don’t need to figure this out alone, and you don’t need to commit to anything to find out where you stand. Get in touch for a free, no-obligation chat — usually 20 to 30 minutes — and we’ll help you understand whether an IVA fits. Everything you tell us is treated in confidence.
We’ll talk through your income, outgoings and what you owe, so an adviser can build a picture of what you can realistically afford, then confirm an IVA looks suitable or suggest alternatives. You can also get free, impartial guidance from MoneyHelper, StepChange or National Debtline.
Do I qualify for an IVA?
As a general guide, an IVA could be suitable if you:
- Are struggling with your current unsecured debts
- Owe more than £7,000 of unsecured debt
- Can afford around £100 or more a month towards your debts
- Owe money to two or more creditors
If an IVA looks right, a licensed insolvency practitioner will draft a proposal and present it to your creditors at a creditors’ meeting, showing what you can afford to repay.
How an IVA works
For an IVA to be approved, at least 75% (by debt value) of the creditors who vote must accept the proposal. Once that threshold is met, all creditors are bound by it — even those who objected. You then make a single monthly payment, which your insolvency practitioner distributes to your creditors.
At the end of the five or six years, any remaining balance on the qualifying debts included in the IVA is written off. Before you start, you’ll be told exactly how long it will last, what you’ll pay each month, and the fees involved. For the after-effects, see an IVA and your credit rating.
What about fees?
There are no upfront fees. Fees only apply if your IVA is approved, and they’re included within your monthly payment — so you won’t receive separate bills. They’re all explained in full before you agree to anything.
Not sure an IVA is the one for you? Compare it with a Debt Management Plan, or read is an IVA better than bankruptcy.
Free, confidential advice with no obligation.
Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline and Citizens Advice.