Individual Voluntary
Arrangements (IVA's)


Individual Voluntary
Arrangements (IVA's)


Make affordable repayments for 5 years, and clear all your debt

An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay back what you can afford over 5 years, then they’ll write off anything that’s left.

Lots of firms advertise IVAs as a ‘government backed’ way to write off 80% of your debt, or more. But beware – these firms may not be regulated by the FCA and, as such, won’t be able to tell you about other solutions that could be available. The level of write off they advertise is misleading too. 50-60% is more realistic in an IVA (for anything more you’d probably be looking at bankruptcy or a debt relief order). Some of these firms have high failure rates, meaning that their customers end up back in the position, or even worse off, than they started.

For a for more information on an IVA, and a full list of all the advantages and disadvantages. Please click here

Pay an amount you can afford over a limited period, usually 5 years.

Any debts that have not been repaid at the end of your IVA will be written off and you will be debt free.

Pay an amount you can afford over a limited period, usually 5 years.

Any debts that have not been repaid at the end of your IVA will be written off and you will be debt free


How do you apply for an IVA?

Before applying for any debt solution, from any provider, you first need to get debt advice. You should never start a debt solution without first knowing all the options.

It’s impossible to enter a solution with a regulated organisation without getting debt advice first, so any firm that offers to enter you into a solution straight away is probably unregulated and should be avoided.

Most providers will need you to book a telephone appointment so they can give you debt advice. These can be lengthy – usually an hour or more - and not everyone is comfortable discussing their situation with a stranger on the phone. At Angel Advance, we recognise that this can, for some people, be a barrier to getting help, so we have made it as easy and stress free as possible.

Our online service allows you to complete debt advice completely online. You don’t need to speak on the phone unless you want to. You don’t even need to provide a phone number, just your email address so you can save your progress and we can email you a copy of our advice.

At the end of your enquiry, we’ll present you with your options, and let you know which one we recommend for you. You then have the option to apply online, or you can save your progress and come back later, once you’ve taken some time to consider your options.

If you prefer to get help over the phone, you can book a telephone appointment for a date and time to suit to you. We work hard to design our services to suit you and your needs. Talking about debt is never easy, so communicate with us in whichever way makes you most comfortable.

Key advantages of IVA's


You will pay an amount that you can afford over a limited period, usually 5 years.

The remainder of your debts will be written off at the end of the term.

Your creditors can’t pursue you for the debts once the IVA is agreed, and they can’t apply interest and charges.

If you are a homeowner you will be able to remain in your home.

Key Disadvantages of IVA's


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You can’t borrow more money during the course of the arrangement.

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An IVA will be entered on the Insolvency Register and will show on your credit file for 6 years.

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If you have a property with equity, you will need to try and re-mortgage towards the end of the agreement. If you are unable to do so the IVA may be extended by 12 months.

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If your situation changes for the better you will be expected to pay more to your creditors.

Frequently asked questions



If you choose a solution that we can offer, subject to you being able to provide us with the information we need, we can contact your creditors straight away. We can let your creditors know that you’re getting help with your debts and ask for them to stop contacting you.

A debt management plan administered by Angel Advance could be set up in a matter of days (sometimes on the same day you get advice). An individual voluntary arrangement or debt relief order will take a bit longer because there is a formal process to be followed – but we will still request that your creditors stop contacting you while they are being set up.

If you choose a solution we can’t provide, we can let your know how to proceed and give you a copy of the information we’ve collected, and our recommendations, to take with you and speed up any application.


An IVA is a legally binding agreement between you and your creditors for you to pay off some of your debt – whatever you can reasonably afford - and for your creditors to write off the rest.


Our Insolvency Practitioner, Janet, will take a thorough look at your financial situation (looking at bank statements, wage slips etc.) and work with you to put a case to your creditors for why you need an IVA (a ‘proposal’). Once you’ve both agreed on it, the proposal will be sent to your creditors to consider. Janet will only propose an IVA to your creditors if she thinks it will be successful.

Your creditors get to vote on whether they think the proposal is fair. They don’t all have to agree – 75% need to be in favour of the IVA for it to go ahead (this is based on debt balance).

The creditors can ask for changes to be made before they agree to it. This is quite common, and any changes they request will be discussed with you.

Once the IVA has been agreed, your creditors won’t be able to contact you about recovery of the debt, or take any further action against you.


The solution that these adverts are trying to sell you is an IVA, but the truth of the matter is that you’re only likely to get 80-90% of your debt written off if you go bankrupt. IVAs are not exclusive to these firms, and you shouldn’t consider entering one until you’ve had advice from an FCA regulated firm which can tell you about all the solutions available to you.

An IVA is a serious commitment and the firms advertising on Google make a lot of money by selling your data onto another firm that will offer you an IVA. Unfortunately, there are high failure rates amongst some providers (failing an IVA means it will be terminated and you’ll often owe as much as you did at the start) because the IVAs being sold aren’t suitable. You can only know for sure that it is suitable if you’ve had FCA regulated debt advice and discussed all solutions.

You should be aware that the level of write off in a solution, if any, will be based on the solution you choose and your individual situation. In an IVA, for example, it would be extremely unlikely for 90% of debt to be written off; 50% would be far more realistic.

Before choosing a debt advisor, check that they are regulated by the financial conduct authority to offer ‘debt counselling’ and ‘debt adjusting’. This means that they can give debt advice and offer debt solutions. If they aren’t regulated, they will only tell you about what they can offer which may not be the best option for you and may cause you further problems further down the line.


Once your IVA is in place, you will be expected to live to the budget that’s been agreed with you. You will always have enough flexibility in your budget to live comfortably, but may be expected to cut out some luxuries whilst your IVA is in place.

You won’t be forbidden from things like going on holiday, for example, but you’ll need to save up for luxuries like this out of the allowances in your budget, which will mean cutting back on other things.

You will also need to tell your IP about any changes to your situation. If you do lots of overtime, get a pay rise, or receive a lump-sum, like inheritance, you can’t just spend this on yourself, unfortunately. You’ll need to pay some of the extra money into your IVA so you should discuss with your IP straight away, before you spend any of it.


Yes – and if you keep up your side of the agreement, anything left owing at the end of the IVA will be written off by your creditors.


If you don’t have enough income to make monthly payments, such as it you’ve just retired or had to give up work, you may still be able to do an IVA if you can make a one-off lump sum payment.

There are a number of ways this money can be raised. For example, a redundancy payment, pension release, a friend or relative gifts you some money, you could release the equity in your property, or surrender a life policy. The creditors are likely to accept writing off the majority of your debt if it is clear to them this is the only solution.

In a lump sum IVA, your IVA could be completed in as little as 3 months, compared with 5 years in a monthly payment IVA.


An IVA can be agreed and in as little as 6 weeks. For you this will mean a suspension of all legal action, no further worrying phone calls or being chased by debt collection agencies.

If this seems like a long time, don’t worry, we can let your creditors know straight away that we’re working with you, and ask them to stop contacting you.


Setting up an IVA is a simple process; most of the work is carried out by us. We will deal directly with your creditors. The process entails a number of steps:

  1. i. You are referred to us, or can apply directly to us, and we request some basic information from you. If we’re able to help you we will then either set up a meeting with you or continue to communicate by phone or email, whichever suits you best. During this process we will confirm whether or not an IVA is the right option for you.
  2. ii. We will then ask you to provide us with documentary evidence concerning your debts, monthly income and expenditure, any assets etc. We have to give a clear summary of your financial situation for the creditors.
  3. iii. When we have all the information, we will draft your IVA proposal (your offer to the creditors). This is a legal document and includes your background information and the details of your offer, in addition to further information about the administration of the arrangement.
  4. iv. You then approve and sign the IVA Proposal documents. The Insolvency Practitioner will consider them to ensure that your offer is fair to both you and your creditors. The Insolvency Practitioner will also prepare a report which is sent to your creditors with your proposal.
  5. v. At the same time the Insolvency Practitioner will arrange a meeting date for your creditors to vote on your proposal. You will not usually be expected to attend the meeting although you must be available.

We don’t charge you anything for the help and advice before your IVA is approved by your creditors, however, there are fees in an IVA. This is true of any IVA, through any provider.

The good news is that the fees are all built into the agreement with your creditors, so the fees charged by the IP make no difference to you what you’ll pay back. You only pay your affordable monthly payment for the time agreed.

The fees that are charged are to pay for the professional services of the Insolvency Practitioner that puts together your application and supports you throughout your IVA.

The fees are called the Nominee’s fee (a one-off fee to the Insolvency Practitioner for all the work involved in setting up the agreement), and the Supervisor’s fee (an ongoing fee for the running of your IVA).


Most importantly, you’ll be able to stay in your home in an IVA.

If you have equity in your property, you may have to re-mortgage it and pay some of the equity into your IVA.

You won’t have to re-mortgage if it will make the payments unaffordable or if it will take your mortgage above 85% of the value of your property, but in these cases you may need to pay into your IVA for an extra year instead.


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How We Help You

  • 1. You can get free, confidential debt advice
    online or over the phone with us.
  • 2. We'll recommend the best solutions -
    completely based on your individual circumstances.
    We include every available solution in the UK.
  • 3. If you choose a debt solution with us, then we take care of everything.
    We speak to your lenders and take care of all the paperwork, We do it all for you.

Debt solutions we provide


Our promise to you

  • You are not alone

  • Millions of UK residents are currently struggling
    with debt. If you request help from our team,
    then you will only find compassion, experience,
    understanding and confidentiality.
    Helping people with debt is there full-time job.
    Your wellbeing is at the heart of our service
  • No Hassle

  • You don't need to provide a phone number or
    an address to get help. You just need to provide your email address and your name, and this is only so you can log back in and work at your own pace.
  • Low Cost

  • We work tirelessly to bring down the cost of the debt solutions we provide. The more we drive down costs - the quicker our clients get debt free.
  • All The Facts

  • We will always give you all the information, clearly and as easy to understand as possible.
  • You are not alone

  • Millions of UK residents are currently struggling with debt.
    If you request help from our team, then you will only find
    compassion, experience, understanding and confidentiality.
  • Helping people with debt is there full-time job.
    Your wellbeing is at the heart of our service
  • No Hassle

  • You don't need to provide a phone number or an address
    to get help. You just need to provide your email address and
    your name, and this is only so you can log back in and work
    at your own pace.
  • Low Cost

  • We work tirelessly to bring down the cost of the debt solutions
    we provide. The more we drive down costs - the quicker our
    clients get debt free.
  • All The Facts

  • We will always give you all the information, clearly and as easy to
    understand as possible.

Click retrieve saved details & continue your application

You can save your details and come back any time. Work at your own pace and edit/change your details until your situation is all accounted for. Help is at hand if you need it.


To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money. Or find out more about the different options for paying off your debt here.

IVAs, DRO and Bankruptcy are not available in Scotland.