Managing Debt

Unmanageable debt can be overwhelming, but the IVA approval process is there to help resolve these issues. This process must meet be agreed to by creditors, and when all rules are observed until completion debtors are fully cleared of past due debts. With the help of a qualified Insolvency Practioner and the help of the Insolvency Act 1986, debtors work to resolve debt. It is a wise choice to consult an IVA Practioner prior to settling on any debt solution.


No more debt

Property rights protected

Affordable payment arrangements

Legal hassles are stopped

Debt free within 5 years


5 years of bad credit

Agreement is broken if payment missed

IVA cost is added to debt if agreement fails

IVA failure means credit problems begin again

No further credit allowed while going through the IVA process

Bankruptcy procedures only take a year to complete, but with IVA 5 years are required.

IVA Applicants

Only those living in Wales, England or Northern Ireland can apply to go through this process.

There must be a minimum of two creditors involved.

Debt must be at least 10,000 pounds

Gainful employment required

How credit rating is affected by IVA

Your personal credit rating is impaired for a minimum of 5 years during the process. The mere act of entering the IVA arena is evidence that your credit position is not good. This same effect will continue at least one year after completing the IVA process, if it has been successful.

IVA Approval Process:

To be admitted to the IVA process, at least 75% of your creditors must agree to settle your debt in this way, and an application must be submitted by the consumer to initiate the process. Consumers who have already completed the bankruptcy process are not eligible. However, if they apply and are accepted into the IVA process their bankruptcy process ceases and IVA takes over from there.

IVA/Individual Voluntary Arrangement:

Consumers choose this process when trying to avoid bankruptcy. Most people assume some level of debt, and many are able to manage it well. Notwithstanding, some find problems meeting mortgage repayment requirements while also making car payments, credit card payments and every day expenses. It is easy to get in over your head in debt. There is another option when allowing an Insolvency Practioner to help make your way through the IVA approval process.

Role played by Insolvency Practioner during the IVA process:

Practioners are well trained professionals, but many are Solicitors who have added the job title Practioner to their personal resume. Insolvency Practioners contact creditors for you to aid in determine what outstanding debts are involved and payments required. It is their job to help consumers decide whether insolvency is the better route.

Practioners act as overseers during the procedure. They ensure everyone follows the rules. They also supervise payments and the documentation required. Debtors are expected to agree to any reasonable requests made by the Practioner. Users are protected by Insolvency Laws against collection actions that may occur during the period they are in IVA. The contract is binding only after 75% of creditors have agreed to working with IVA. Meetings with creditors are organized by the IVA Practitioner.

How IVA affects your employment.

This will depend on the company for which you work.

How IVA affects assets.

If the vehicle you drive is valued at less than 5,000 pounds, you will get to keep it as transportation.

How is your partner affected by IVA?

You and your spouse both must participate in the payment process if the relationship is extensive. The outcome is different for those who have just begun living together.

IVA Documentation:

All financial information, including mortgage notes, pay stubs, and bills are given to the Practioner who will then be able to make appropriate arrangements with creditors.

IVA Restrictions:

Creditors are not allowed to make contact with those who are going through IVA protection.


For 5 to 6 years, all payments are made through the Practioner. It is incumbent upon the consumer to judiciously pay this money. Failure to do so will negate the deal. That could mean ending up in worse circumstance than at the beginning.


Some debtors find it embarrassing when information about their financial situation is advertised. With bankruptcy this is not done except in some periodicals.

An Insolvency Practioner can help consumers find a serious financial solution to their debt. None of us enters into debt deliberately seeking to become overwhelmed by it, but when it does happen it is good to know that there is something we can do.

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