An IVA lasts for 5 years. It can only be finished earlier if your creditors agree to accept a lump sum payment in settlement.

The IVA contribution will be calculated using your surplus income and the creditor’s minimum required payment. This will be calculated for you by the Insolvency Practitioner.

To be eligible for an IVA you need to have at least 3 debts, totalling £15,000 or more, owing to 2 or more different creditors. You must have lived in England, Wales or Northern Ireland for over 6 months. You must have a level of income that allows you to pay back at least 20% of the debt you owe over the course of the IVA.

An Insolvency Practitioner will review your situation in detail to ensure that you are suitable for an IVA and can afford the monthly payment before accepting your case.

No. All interest is added at the start of the IVA and any debt remaining after the 5 years is written off. No charges can be added once the IVA commences.

No. An IVA is legally binding on you and your creditors and you are committed to remain in your IVA until it ends. If you cannot afford to continue your IVA within the term then your creditors may consider bankruptcy.

When your IVA finishes all remaining debts are written off and your credit history is updated.

No. As long as you maintain payments to your IVA your creditors are unable to commence legal proceedings or attempt to take goods in lieu of payment. Creditors are not allowed to contact you directly or via a third party.

Yes. An IVA will show on your credit history for 6 years from the start of the IVA and the entry will be updated as ‘completed’ when you finish your IVA. As the debt is written off at the end of the IVA your credit history will immediately start to improve after this.

No. There is no professional disqualification and you can also continue to hold public office whilst in an IVA. This is a major benefit over bankruptcy.