Individual Voluntary Arrangement

What is an IVA?

IVAs were introduced by the Insolvency Act 1986 as a viable alternative to bankruptcy.They provide a solution to people with debt problems without the long terms consequences of bankruptcy.

How much will I have to pay?

Monthly payments are based on affordability.You will provide details of your income and outgoings and your surplus/disposable income (i.e. the amount you have left over every month) will be the amount you pay each month into your IVA.

How long will my IVA last?

Most IVAs last for five years (60 months). However, in certain circumstances, it is possible to make a ‘one off' offer of a payment to your creditors from, for example, the sale of a property or other assets, redundancy monies or the introduction of funds from a third party, e.g. relative or friend.

What happens to the debt I cannot afford to pay?

Once the IVA is completed, any unpaid debt gets written off.

What if my circumstances change when I am in an IVA?

Many people will experience a change in circumstances during the term of an IVA. One of the advantages of an IVA is that the terms can be varied so, if you are in an IVA and this happens to you, you just contact Dunion & Co. straight away and, if appropriate, your creditors will be asked to agree to a variation of the terms of your Arrangement. IVAs can often be successfully concluded early if, for example, you are able to offer a lump sum contribution during the term of the Arrangement from, for example, the sale of a property, an inheritance or redundancy.

Guide to Voluntary Arrangement Fees Is an IVA right for me?
IVA Terms & Conditions In Debt - Dealing With Your Creditors