IVA's 
can write off a large percentage of unaffordable debt.
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What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement to repay what you can afford towards your debts.
You usually make one affordable monthly payment for five or six years. Once you successfully complete the arrangement, any remaining debt included in your IVA is written off.
Once approved, creditors bound by the IVA must follow its terms. Interest and charges on included debts are frozen, and those creditors cannot take recovery action while you comply with the arrangement.
An IVA affects your credit rating and involves fees. If it fails, you could still owe outstanding debts and face bankruptcy.
Pros & Cons of IVA
Pros
- Your creditors are bound by your IVA once approved
- Creditors can’t take legal action against you in an IVA.
- Creditors can’t apply further Interest and charges, your debts are legally frozen.
- IVA payments are based on what you can afford.
- Your IP will distribute payment to creditors on your behalf.
- You may get a payment break if your situation changes.
- You won’t have to sell your home in an IVA.
Cons
- Under the 2025 IVA Protocol, you do not need to release equity or remortgage your home. If your share of the equity is £10,000 or more, the payment term is normally six years rather than five. Your practitioner will explain the terms of your proposal.
- Your credit rating will be affected adversely.
- Your IVA will be recorded on a public register.
- If your IVA fails, you could be at risk of bankruptcy.
- Your creditors need to agree to the IVA.
Customers can get free debt counselling, debt adjusting and providing of credit information services from the MoneyHelper – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from MoneyHelper click here www.moneyhelper.org.uk You can find Government guidance on dealing with your creditors here.
How it works
A simple process to help you find a solution that works for you.
Make an enquiry
Complete our enquiry form so we can contact you to discuss your circumstances. Submitting the form does not determine eligibility for an IVA.
Quick Chat
At a time that suits you, one of our friendly, experienced advisors will contact you to discuss your options. Your enquiry is confidential. Fees may apply to debt solutions.
Your Choice
If an IVA is the best solution for you, we can start the ball rolling whenever you’re ready. The next steps depend on your circumstances and the solution chosen. Debts excluded from a solution remain payable.
Understand your next steps
The next steps depend on your circumstances and the solution chosen. Debts excluded from a solution remain payable.
Not sure where to begin?
No worries, we'll help you make sense of it all.
Be part of the success
(Here are some hypothetical examples of how an IVA could work)
Jenny W
£9000 in Debt
£107/M
John H
£16000 in Debt
£147/M
Jenny Wilson
£13000 in Debt
£123/M
May not be suitable in all circumstances. Fees may apply, Entering into an IVA will affect your credit rating, Any potential disadvantages of entering into an IVA will be explained on application. A debt write off amount of between 25% and 75% is realistic, however, the debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors
Be part of the success
Our team is based in Manchester and is made up of real people.
IVA?
A solution for people with debts over £5,000. An IVA could help you repay eligible debts through affordable payments. Any debt written off depends on your circumstances, creditor approval and successful completion of the IVA.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedDebt management
A Debt Management Plan or DMP, is an informal agreement to pay back non-priority debts, reducing your monthly payments to a single affordable amount each month.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedBankruptcy
Bankruptcy is a formal debt solution for people with debts they cannot repay. It’s often viewed as a last resort but can be a great solution for people without the means to repay debts.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affectedDebt Relief Order
A Debt Relief Order (DRO) is an agreement designed to help people who can’t afford to repay their debts, have a debt level of less than £50,000 and don’t own their home. Zesty Money cannot advise on or arrange a DRO; an approved debt adviser must assess your circumstances.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected