What is an IVA?

Individual Volunteer Arrangement is an alternative relief to those people who do not want to become

bankrupt. IVA is a process available in UK. In Scotland IVA is called as Protected Trust Deed. It was

established in the year 1986 by the UK government through ‘Insolvency Act 1986’. You Insolvency

Practitioner would help you to decide a sum of money to pay on a monthly basis to your creditors for 5

to 6 years. After that period of time you are free from your debts. In the mean time the creditors are

barred from contacting you any way. Once the IVA is in accepted by your creditors you are free from

threatening calls from your creditors or recovery agents.

How it works?

A creditors' meeting is called to consider the IVA proposal by your trustee. The payment to creditors is

usually higher than they would get if the debtor is bankrupt. A vote is and if majority goes with the

debtor then IVA is granted. In recent years, increasing levels of debtors has led to many insolvent

individuals. They seek protection offered within an IVA. IVAs is popular among the people with large

amounts of assets which they want to protect. These assets, such as high equity properties and valuable

cars etc., are not directly threatened under an IVA – but they are at risk in case of a bankruptcy.

How to apply

At first you have to find the best agency which suits you. You provide information to them and they

would submit a proposal to the creditors. If the creditors agree to the proposal your IVS is on. You make

affordable monthly payments for 5-6 years and written off your debts.

Qualification for IVA:

 You have debts over £12,000,

 You are able to pay at least £140 to your creditors per month,

 You are struggling to repay your monthly creditor payments and you are fed up with the

disturbance from your creditors.

Assets and Home

Assets: You will have to sale one of your valuable assets. You can keep your vehicle if it is to more than


Home: You do not have to sale your home merely because you are taking IVS, you might have to release

the equity if there is any. In case of tenancy there is no problem.

What about Job?

It depends on him who has employed you.