Sometimes known as an IVA, find out more information here

An IVA is a legally binding agreement between you and your creditor(s).   The payment terms are over 60 months or 72 months.  Towards the end of the 60 month term you will be asked to settle any remaining balances in full.  This can be done by a third party or if not possible, you may be asked to remortgage your property.   If remortgaging is not possible then the plan will be extended to 72 months.  After this period any outstanding debt is written off.  An IVA must be affordable to you.  This is worked out taking into consideration all of your essential commitments and expenditure.  Only unsecured debts can be included in an IVA.  Please see our other information heading below for a more detailed breakdown of which debts can and cannot be included. 

An IVA may be suitable when you cannot make your contractual commitments to your creditors.  For  more information including payments to your creditors and any cancellation fee’s we are more than happy to put you in contact with the IVA point of contact to discuss in more detail.

Please find below an outline of the Risk/Disadvantages Cost and Advantages of entering into an IVA.   Please also be aware Debt Correct do not administer IVA’s but work closely with other licensed companies so as to offer this to our clients.  Debt Correct may receive a fee for introducing you to an IVA Administrator, if you subsequently complete an IVA.


It is difficult to give an accurate costing of an IVA .  As previously stated, Debt Correct do not administer IVA’s but do work closely with licensed companies to offer this service. Setting up an IVA can typically cost between £1000 to £2000 depending on the level of debt and which creditors you owe.   These fees are known as “nominees fee’s”.    You will also be charged a “supervisors fee” (typical 15% of your disposable income).  The “nominee’s fees” are taken at the start of the arrangement and are spread over the beginning of the Arrangement until paid in full.  You will then have the supervisor’s fees applied to any payments.    You will not be asked to pay more than your agreed disposable amount each month.    Typical IVA’s are payable over 60 or 72 months.  Towards the end of 60 month term you may be asked to look into settling the remainder of any outstanding balance.  This could include being asked to remortgage your property, if applicable.   If this is the solution you choose, then your IVA provider will discuss this in more detail and a full breakdown of all cost incurred.


One affordable monthly payment

Potentially you could write off some of your debts

Creditors will not contact you whilst in an IVA

Lump sums can be paid in at any time



If there is equity in your home, you may be asked to remortgage (remortgaging may result in higher rates of interest being charged)

If you are unable to remortgage then the arrangement can be extended by a further 12 months (from 60 months to 72 months)

Your IVA is recorded on a public register and available to the public

This may affect your credit rating and your ability to borrow money in the future.   On completion of your IVA your ability to gain credit may be affected for a further 6 years.

You may be limited borrowing no more £500 whilst in the IVA (without written approval from the IVA supervisor)

If you do not keep up with the repayment, then your creditors can contact you to recover any monies still owed this may include back dating any interest.

Failure to keep up repayments may also result in your creditor requesting that the supervisor of your IVA to petitions for bankruptcy.

Your creditors may not approve the IVA



It is important to keep up on any repayments on what are considered priority bills.  An example of which would be your gas or electricity bills.  If you stopped paying them, you could find yourself without these services. 


Please find below a list of priority bills:

Mortgage or Secured loan(s)         Rent                                        Council Tax             Child Maintenance

Magistrates Court fines                     TV Licence                              Gas                           Electric  

County Court Judgements                 Water Rates                           Telephone              County Court Judgements


Please find below a list of debts/commitments that can and cannot be included in an IVA:


Can be included:

Unsecured Loans     Credit Cards    Store Cards     Overdrafts   Catalogues   Arrears not attached to current property or provider.

Cannot be included:

Secured loans           Hire Purchase (HP)    Current Utilities providers   Child Maintenance 

Guarantor loans       TAX or VAT arrears    CCJ’s                                         Student loans

TV License arrears    Court fines                  Social fund loans                    Mortgage arrears