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IVA Debt

Here you will find more information on an IVA ( Individual Voluntary Arrangement), how an IVA works and how to get an IVA with X Debt.

With our IVA service we do not charge upfront fees and any information you provide will be in the strictest confidence. There is no obligation to enter into an IVA so please contact one of our experienced advisors now to discuss your situation.


A typical IVA may be where you owe over £12,000 and earn a salary and / or have surplus monthly household income. In these circumstances an Individual Voluntary Arrangement is often the most appropriate solution to your debt problems. If you are experiencing problems with your monthly bills and repaying creditors please contact X-debt for assistance as soon as possible. If an Individual Voluntary Arrangement is not appropriate in your circumstances we will let you know when we have fully assessed the situation.

In some circumstances we can arrange an IVA where your unsecured debt is as low as £7,000. So whatever your circumstances please contact us for advice.

We provide a very personalservice so you can be confident you are receiving the best possible help. Our in-house Insolvency Practitioner is on hand to answer any queries you may have. Please try our IVA calculator to see which option may be most suitable for you or call us free of charge on 0800 043 2424 or 0161 787 3400 now.

What is an IVA?

An Individual Voluntary Arrangement is a contract between you and your creditors. Generally you pay an agreed monthly sum, usually for 5 years. This is divided up between your creditors, who accept the sum in settlement of the amount you owe them and agree to write off a portion of your debt.

How much will I have to pay in to my IVA?

Your monthly payment depends on your income and expenditure, and has to be affordable to you. It could be as low as £70 per month. A standing order authority will be set up and your first payment must be made prior to the creditors meeting.

What kind of people enter in to an IVA?

In a nutshell - people who can't pay their debts. If you are unable to pay your debts as they fall due, you are insolvent and the law gives you a number of alternatives including IVA.

Are there other debt solutions other than IVA?

Of course, and we will always try to signpost you to the most suitable debt solution. You could get all of your creditors to reschedule your debts, but this may be difficult if you have a lot of creditors. Some banks and building societies have debt counsellors for you to speak to. However, an informal arrangement offers no guarantees. One or more of your creditors could change their mind at a later date AND make you bankrupt, or charge you high rates of interest later if your circumstances improve. You may also take longer to finally clear your debt. Please contact us for advise or try our IVA calculator.

What are the advantages of an IVA?

We help you to calculate what you can afford, and you make just one payment to your client account by standing order each month. The amount is the same over the entire period of your arrangement, unless your circumstances change but not in relation to the cost of living rise and you can afford more. Typically, your circumstances will be reviewed once every year. Once your arrangement is approved, all your creditors are legally bound by its terms, as long as you stick to the terms. Once the agreed term is complete (usually after 5 years), you have no further obligations to your creditors. At this point you stop paying the monthly sum, and make a fresh start. Your employment will probably not be affected. Your employers will not know about your arrangement unless you choose to tell them. Unlike bankruptcy, an Individual Voluntary Arrangement is not advertised in the local press and does not exclude you from running a business or lead to many professions terminating your employment. Please contact us for free debt advice or try our IVA calculator.

What do I need to do to start an IVA?

Before your proposal is put to creditors you need to sign it as a "Statement of Truth". You do not need a solicitor for this, you simply read it and sign it. We prepare all documentation for you and we contact your creditors on your behalf. A meeting of creditors will then consider your proposal. You will not usually be required to attend - usually most creditors do not attend themselves, voting by proxy instead. Even if creditors do attend, the meeting only lasts for 15-20 minutes. Someone from X-debt will chair the meeting, and you need to be available by phone during this period.

What else should I know?

A bankruptcy income payment order can be over up to 3 years. The duration of an Individual Voluntary Arrangement is generally 5 years. However, this voluntary increase in the payment term should make your creditors sympathetic to your proposal.

Will my home be safe?

It is not usual to have to sell your property. If you do own your home, you will need to take reasonable measures at the end of your arrangement to make any equity available to your creditors (usually by re mortgaging). This requirement is also true for bankruptcy, where normally the joint owner would have to buy your share or alternatively the property would need to be sold..

What if my creditors don't agree to an IVA?

75% of votes (in value) at your creditor meeting must be in favour of your proposal. Creditors can suggest modifications to your proposal and you can choose whether to accept them or not. If your creditors don't vote in favour you will still have the option of an informal arrangement with your creditors, or of bankruptcy.

Do I have to pay any costs?

Fees are taken from the affordable monthly contribution and any other assets, if applicable, (funds) paid into your Individual Voluntary Arrangement. Providing you keep to the agreement for five years (or the term specified in your proposal), any debt you cannot afford to repay will be written off by your creditors. You pay only the funds you and your creditors agree to under the terms of the arrangement. Any fees for the initial arrangement and subsequent supervision are included in the funds which you agree to pay in and are subsequently approved with your creditors.

When you agree to proceed your payments to creditors will stop and you begin to pay a monthly contribution. This will be a set figure that you have agreed you can afford and is confirmed in your proposal.

X-debt will charge fees for the role of its Insolvency Practitioner for work as nominee and as supervisor. A separate fee is payable for work in each of these roles. Charges could also be made for additional expenses.

The nominee fee is a fixed fee and differs for each arrangement but typically is between £1,000 and £2,000. This is for the work carried out in setting up your proposal. There are no upfront fees for advising you and the nominee fee is taken from the funds paid in.

The supervisory fees are drawn monthly from funds received once your nominee fee is paid, usually from month 6 of the arrangement. It is based on a percentage of the funds received, generally capped at around 15% by creditors. This is for work in maintaining your arrangement during its term and until it is concluded.

It generally takes around 6 to 8 weeks to set up and you may commence your contributions during this period. It is likely that you will have made 1 or 2 contributions by the time your proposal is approved which will be used as part of your nominee fee as you will have agreed to instruct our Insolvency Practitioner to act on your behalf and work will have formally commenced on your case. Your monthly outgoings will not increase, and are likely to drop, as you will have stopped making individual payments to creditors by this time.

If creditors reject your proposal we do not attempt to recover the balance of the Nominee fee from you. All fees will be discussed with you prior to any proposal being implemented and agreed. This is a general guide for information purposes.

The Pre April 2010 Voluntary Arrangements - A Creditors' Guide to Insolvency Practitioners Fees can be accessed here

The Post April 2010 Voluntary Arrangements - A Creditors' Guide to Insolvency Practitioners Fees can be accessed here

Please contact us for free debt advice or try our IVA calculator to see whether an Individual Voluntary Arrangement is suitable for you.

Have you been in a debt management plan for more than 12 months? Ask for an independent financial review now on 0800 043 2424.

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