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Individual Voluntary Arrangement - Is it the best Debt Solution

Is an Individual Voluntary Arrangement the Best Debt Solution?

At X-debt we pride ourselves in providing best advice and, although we only offer Individual Voluntary Arrangements (IVAs) as a personal debt solution, we will never recommend an IVA if it isn’t the most suitable for your situation.

In cases where we feel an IVA isn’t appropriate, we will always try to signpost you to a debt solution that is.

You should feel comfortable with any arrangement and that it is the best option for you. It is important that you should never feel pressured or coerced in to agreeing to an arrangement you are not comfortable with and always take time to assess the pros and cons.

At X-debt we will discuss your situation in a calm and friendly manner. If you have previously discussed your debts with others and feel it is not appropriate, or feel pressured in to accepting an arrangement you are not comfortable with, please speak to us and we will be happy to offer a second opinion. It may be that the original advice is right for you but you can rest assured we will discuss the best solution.

On the flip side, there is also a possibility where an Individual Voluntary Arrangement is not the best solution on the face of it but you, as an individual, prefer that approach. It may be that bankruptcy would be more appropriate but for obvious reasons, would not wish to go down that route.

Feel free to contact us by calling 0161 787 3400 or complete our IVA Calculator and we will call you back.

What Other Debt Solutions?

So, if an IVA isn’t the most appropriate debt solution for you, which other options are available?

You can find more details from our Debt Solutions page but to summarise:

Debt Management

A Debt Management Plan is an informal agreement made by your debt management company with your creditors to repay unsecured debts. The company can arrange for you to make a single monthly repayment which will be distributed to your creditors under the terms of the agreement with them.

Debt Relief Orders

A debt relief order (DRO) is an order granted in cases where you can’t afford to pay off debts. It usually lasts about 1 year and during this time your creditors cannot take action against you to get their money back. It can be suitable for those with under £3000 of unsecured debt and very limited assets.


In most cases this should be a last resort and can be instigated by any creditor owed more than £750, or you can petition for your own bankruptcy. Except for certain exemptions, bankruptcy involves your assets, including your home being sold and the proceeds used to cover all or part of your debt.

 Consolidation Loans

A consolidation loan is used to ‘consolidate’ some or all of your debts in to one loan and one monthly payment.  This can reduce the interest being paid on high interest debts such as credit cards or sub-prime loans. It may be a secured loan on your home or additional borrowing on your mortgage so independent advice should be sought.


A CVA is similar to an IVA but for Company debts and is a legally binding arrangement with your company's creditors. It allows a company to reduce monthly commitments and improve cash flow and therefore helps the Company continue to trade.

As you can see there are a number of debt solutions available to UK citizens and it isn’t a ‘one size fits all’ process. Please speak to us in confidence to see how we can help.

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