Could You Qualify for an IVA?
You might be eligible for an IVA if you:
- Owe £7,000 or more in unsecured debt
- Have regular income (employment, self-employment, pension)
- Can afford making monthly payments
- Have at least two creditors
- Want legal protection & a clear path to becoming debt-free
Real IVA Example
| Credit Cards | £13,500 |
| Store Cards | £4,500 |
| Personal Loan | £5,000 |
| Overdraft | £3,000 |
| Utility Bills | £1,500 |
| Total Debt | £27,500 |
Your monthly debt repayments
£717
Previous
Monthly Saving: £580
£137
New (IVA)
Est. Debt Written Off: 78%*
*Debt write-off varies by individual circumstances and is subject to creditor approval.
Benefits of an IVA
Legal Protection from Creditors
Once your IVA is approved, creditors are legally prevented from contacting you or taking further action against you.
Interest & Charges Frozen
All interest and additional charges are frozen from approval, so your debt stops growing.
Write Off Remaining Debt
After completing your 5-6 year term, any remaining qualifying unsecured debt is legally written off.
Keep Your Assets
Subject to creditor approval, an IVA typically allows you to keep your home and car - unlike bankruptcy.
One Affordable Payment
Make a single monthly payment based on what you can realistically afford after essential living costs.
Only 75% Approval Needed
Unlike informal arrangements, only 75% of creditors (by debt value) need to approve - binding all creditors.
What Debts Can Be Included in an IVA?
An IVA is arranged and supervised by a licensed Insolvency Practitioner - a qualified professional specialising in helping individuals and companies manage debt. An IVA can only include unsecured, non-priority debts. These are debts not secured against an asset.
Debts You CAN Include
- Credit cards & store cards
- Personal loans & payday loans
- Overdrafts
- Catalogue debts
- Water bills (water, gas, electricity)
- HMRC debt (income tax, national insurance, tax credits)
- Benefit overpayments
- Solicitor's costs
- Business debts (if personally guaranteed)
- Debts owed to family and friends
- Vet bills and private health insurance
Debts You CANNOT Include
- Secured loans (e.g. mortgages, car finance)*
- Student loans
- Court & magistrate fines
- Child maintenance & CSA arrears
- Social fund loans
- TV licence arrears
How Does an IVA Work? The IVA Process
Why Choose NDH Financial's Insolvency Practitioners?
- Specialist Insolvency Experts - We specialise exclusively in IVAs and personal insolvency solutions
- In-House Licensed Insolvency Practitioner - Direct access to qualified professionals
- No Upfront Fees - All fees are included in your monthly IVA payments
- Transparent Process - We'll explain everything clearly, with no hidden surprises
- No Obligation Consultations - No-obligation advice to help you make the right decision
- Trusted Service - Helping people across England, Wales, and Northern Ireland become debt-free
Who Can Apply for an IVA?
IVAs are available to residents of England, Wales, and Northern Ireland. You'll need to demonstrate:
- Unsecured debts you're struggling to repay (typically £7,000+)
- Regular income from employment, self-employment, pension, or other sources
- Disposable income after essential expenses to make monthly payments
- At least two creditors
If you're employed, self-employed, part-time, full-time, retired, or receiving benefits - as long as you have disposable income above approximately £80-£100 per month, you may qualify.
You can enter an IVA whether you're a homeowner, tenant, or living with family or friends.
Individual Voluntary Arrangement FAQs
An IVA typically takes 3 to 6 weeks to set up from initial contact to approval. This includes gathering financial information, preparing the proposal, and allowing creditors time to vote.
Yes, an IVA will appear on your credit file for six years from the start date. However, this is the same duration as a Debt Management Plan - but unlike a DMP, an IVA offers legal protection and debt write-off.
Usually, yes - especially if your car is essential for work or family transport and not excessive in value. Cars under £6,000 are generally acceptable, though creditors may approve higher values depending on your circumstances.
Yes. Once your IVA is approved and you meet its terms, you have legal protection from bailiffs and any further debt-related court action.
Getting a mortgage during an IVA is difficult, though specialist lenders exist. After completing your IVA, your chances improve - especially after 2+ years have passed. You'll typically need a larger deposit and may face higher interest rates.
Contact your Insolvency Practitioner immediately. They may be able to arrange reduced payments or a temporary payment break, subject to creditor approval. If you can't maintain payments and creditors don't approve changes, your IVA may fail.
Learn more about what happens if you can't make a payment on your IVA.
Yes, individuals in receipt of benefits can use an IVA to manage their debts, however, other solutions may be more appropriate.
Yes. If you receive a windfall (e.g. inheritance over £500) or a third party offers a lump sum, your IVA may be settled early. Specialist IVA loans are also available after typically three years, though this isn't suitable for everyone.
For most jobs, no. You're not required to tell your employer unless your employment contract specifically requires it. Certain professions (accountants, insolvency practitioners, solicitors, police, and armed forces) may have restrictions, so always check your contract or licensing body.
If you inherit over £500 during your IVA, you must notify your Insolvency Practitioner, and the funds will be paid into the arrangement. Your IVA will complete early if the inheritance is sufficient to pay creditors in full plus fees.
Learn more about what happens to your inheritance in an IVA.
Yes. Self-employed individuals can use an IVA to settle personal and business debts, including unpaid self-assessment tax and business rates. Unlike bankruptcy, an IVA allows you to continue trading without asset seizure or director restrictions.
IVA fees are included in your monthly payments - and there are no upfront costs with NDH Financial. Fees cover two main areas: the Nominee Fee (setup and proposal work) and the Supervisor Fee (ongoing management). All fees are agreed by creditors when your IVA is approved.
An IVA is individual to each person, so anyone named on joint debts will not be protected. However, if you and your partner have debt that needs clearing, you could take out an IVA scheme individually and connected by a 'interlocking IVA'.
