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Individual Voluntary Arrangement

An IVA is a genuine alternative to bankruptcy and when used efficiently can be a great way to solve financial issues.

What’s an IVA?​

An Individual Voluntary Agreement (IVA) is designed as an alternative for people who would otherwise have no choice but to file for bankruptcy. Since IVA debt management was introduced in 1986 as part of the Insolvency Act, they have become a widely used solution for people to solve their debt problems.
Many believe IVAs to be too good to be true, but this debt management solution has helped thousands of people become debt-free.

IVA- Advantages

One easy lower Payment
Only pay back what you can afford
Unaffordable debts written off
Creditor Protection after approval of IVA
Debt free in 60 months in most cases
Interest and Charges frozen after approval of IVA.

IVA - Disadvantages

Only unsecured debts included in the IVA can be written off at the end of the period and any unsecured debts not included may remain outstanding.
The debtors or creditors will need to approve the IVA for the IVA solution to proceed. Therefore the IVA is not guaranteed and could be declined.
Expenditure restrictions will apply for anyone entering an IVA, therefore non essential luxury expenses may need to be reviewed.
While an IVA solution will generally not require you to sell your home, you may be expected to remortgage to release equity in the final year of the IVA. Due to
your credit score, this may attract a higher interest rate or if you are unable to remortgage, the IVA may simply be extended by a further 12 months.
Although it is very rare, If the IVA agreement does fails without a good reason, there is a risk of Bankruptcy.
Your credit rating will be affected after entering into an IVA.

IVA - Fees

There are two fees associated with an IVA, the Nominee fee and the Supervisor fee. Below is an explanation of these fees and how they are charged.

Nominee Fee
This is the fee incurred by the IP (Insolvency Practitioner) in drafting your IVA proposal and getting this approved at the creditor's meeting. The nominee fees are
paid out of the proceeds of the arrangement.
Supervisory Fee
Once your IVA has been approved by creditors, your Nominee becomes your supervisor who will be responsible for monitoring and supervising your IVA for
its duration. The fees that are chargeable for this are usually expressed as a proportion of what is recovered for your creditors in the IVA – generally 15% of
realisations. (In other words 15% of the total payments you make in your IVA)
Finally there are expenses to pay in every IVA, these include insurances to protect any money paid into your IVA, software licence fees and a registration fee to register the IVA with the Insolvency Service. Please note that all Insolvency fees and expenses are paid out of the proceeds of the arrangement. You would not be required to make any additional payments in respect of Nominee’s, Supervisory or any additional costs. There are no upfront costs and if your IVA is unsuccessful then there are no fees to pay.

Our Fees

If an IVA is recommended as a suitable solution for you, and you decide to proceed, Clear Advice Services Ltd also trading as easydebthelp.co.uk will carry out a comprehensive review via a fact find of your personal financial circumstances and submit your case to the Insolvency Practitioner (Umbrella Insolvency).
Upon packaging and referring your IVA case to Umbrella Insolvency, Clear Advice Services Ltd will receive a fee from Umbrella for all the initial work carried out in preparing your case which will allow Umbrella to draft your IVA Proposal and help you to get your IVA approved by your creditors. We will never request a fee directly from you. ​​​​​


How Can An IVA Help Clear Your Debts?

  • It can write off all of the debt you can’t afford
  • You can clear your debts in 60 months or less
  • It can put a stop to all creditor contact
  • Will consolidate debts to one lower, affordable monthly payment
  • It will prevent or stop legal action, including bankruptcy​

How does IVA work?

IVAs are proposed on the basis that you will make regular monthly repayments for a fixed period of time; most IVAs are spread over five years. However, in limited cases the IVA may instead involve making a one-off lump sum payment to your creditors, usually raised from assets such as equity in your home. In all cases, our specialist IVA practitioners will carry out an assessment of your finances and recommend what will be the best option for you.

How do I arrange an IVA?

Only a Licensed Insolvency Practitioner is able to set up and manage an IVA. If you are in debt and feel that an IVA might be the solution you’re looking for then the first step is to speak to one of our advisors. Feel free to discuss with our advisors your current situation, income, outgoings and debts. This will help us determine if an IVA is the best option for you. If yes, we will prepare your case and appoint one of our Insolvency Practitioners to act on your behalf.

For more information on an IVA or any other debt help solution fill out the enquiry form here:

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All of our specialist debt advisors at the Clear Advice Services have over 10 years of experience in the Debt advisory sector...

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Call: 0161 5372015
Out of office hours: 0161 5372014
Email: info@clearadviceservices.co.uk
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