Struggling with debt? Understand how an IVA works — including the risks and costs — and how it compares with other debt solutions before you decide anything.
An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.
Checking your options won’t affect your credit score. Your enquiry goes to My Debt Plan Ltd. Free, impartial debt advice is also available from MoneyHelper, an independent service set up to help people manage their money.
IVA Advice Online is a trading name of My Debt Plan Ltd, a commercial, profit-making business that provides Individual Voluntary Arrangements. If you enter an IVA with us, our fees are taken from your monthly payments. We don't provide debt management plans, DROs or bankruptcy; if an IVA isn't suitable we may refer you to a partner firm and receive a payment for the introduction. More about who we are.
We take the time to understand your situation and explain every option clearly.
Talking about debt is hard. We aim to explain your options without judgment or pressure.
We operate a transparency policy, so you know exactly who you're dealing with.
We explain the risks and costs of each option, including when an IVA isn't the right fit.
My Debt Plan Ltd provides IVAs only. The other solutions below are provided by other organisations, and some are available free of charge. If you live in Scotland, different solutions apply — see the Accountant in Bankruptcy.
A legally binding agreement with your creditors, set up and supervised by a licensed insolvency practitioner, usually lasting 5 to 6 years. It must be approved by creditors, is recorded on the public Insolvency Register and your credit file for six years, and fees come out of your payments. Remaining qualifying unsecured debts are written off only if the IVA is completed. Secured debts and some others can’t be included.
Learn more →An informal plan to repay your unsecured debts in full through one reduced monthly payment. Creditors don’t have to agree or freeze interest, and nothing is written off. DMPs are available free of charge from debt charities. We don’t provide DMPs.
Learn more →A formal insolvency procedure for people who can’t realistically repay their debts. Most unsecured debts are written off and you’re usually discharged after 12 months, but assets including equity in your home may be sold and restrictions apply. You apply to the Insolvency Service; we don’t provide bankruptcy.
Learn more →For people with debts under £50,000, usually less than £75 a month spare income, assets under £2,000 and no vehicle worth £4,000 or more, subject to full eligibility checks. There is no application fee. Qualifying debts are usually written off after 12 months. You apply through an approved intermediary; we don’t provide DROs.
Learn more →An IVA is a formal, legally binding insolvency procedure. Here’s what’s involved.
Your income, spending, debts and assets are reviewed to see which options could work — including a DMP, DRO or bankruptcy, not just an IVA.
If an IVA looks suitable, an insolvency practitioner prepares a proposal setting out your payments and fees. It only goes ahead if creditors holding at least 75% of the debt voted agree.
You pay the agreed amount, with a review of your income and spending each year. Qualifying debts are only written off if the IVA is completed successfully.
These are rough indicators, not a test of whether you qualify. A full assessment also checks whether a DRO, a debt management plan or bankruptcy would suit you better, whether you could repay through a DMP over a similar period, any equity in your home, whether your income is stable, whether you rely on benefits, and whether any debts are disputed.
A typical IVA term. Qualifying debts are only written off if the IVA is completed. Homeowners may need to release equity or extend the IVA by up to 12 months.
See if you qualify →Fees are taken from your monthly payments · How IVA fees work
Clear, jargon-free articles to help you understand your options before you decide anything.
How to apply, who qualifies, how an IVA works and what to expect — with free, no-obligation advice.
Read guide →Formal vs informal, length, creditor protection, fees and credit impact — compared side by side.
Read guide →How each affects your home, assets, credit rating and timescale — and which may suit you.
Read guide →An IVA (Individual Voluntary Arrangement) is a formal insolvency procedure in England, Wales and Northern Ireland. You agree with your creditors to pay what you can afford over a set period — usually 5 or 6 years — and it’s set up and supervised by a licensed insolvency practitioner. It only starts if creditors approve it. Once approved, interest and charges on included debts are frozen and those creditors can’t contact you directly. Remaining qualifying unsecured debt is written off only if you complete the IVA.
As a rough guide, IVAs are usually considered where someone has more than £7,000 of unsecured debt, owes two or more creditors and can afford around £100 a month. These are not qualifying criteria. A proper assessment also looks at whether a DRO, debt management plan or bankruptcy would suit you better, your home and any equity, whether your income is stable and whether any debts are disputed. Free, impartial advice is available from MoneyHelper.
There are no upfront fees. An IVA has a nominee’s fee (for preparing your proposal and putting it to creditors) and a supervisor’s fee (for running the IVA). Both are taken from your monthly payments once the IVA is approved, which means less of what you pay reaches your creditors. My Debt Plan Ltd’s total fees are currently £3,650, although creditors may change this when they vote. The fees are set out in writing in your proposal. More about IVA fees.
Yes. An IVA is recorded on your credit file for six years from the date it starts, and on the public Individual Insolvency Register while it runs. You’re likely to find it harder and more expensive to get credit during that time. An IVA and your credit rating.
My Debt Plan Ltd provides IVAs only. If an IVA isn’t suitable, we may refer you to a partner firm that specialises in alternative solutions such as a debt management plan, a DRO or bankruptcy, and we will receive a payment for the introduction if you enter a debt solution with them. You can also get free, impartial advice from MoneyHelper, StepChange, National Debtline or Citizens Advice.
Everything in one place, grouped by topic. Each guide links to the right debt solution so you can take the next step when you're ready.
Send a few details and My Debt Plan Ltd will contact you to talk through your situation, including whether an IVA or another option may suit you. Everything you share is treated in confidence.
IVA Advice Online is a trading name of My Debt Plan Ltd, a commercial business that provides IVAs. Free, impartial debt advice is also available from MoneyHelper, StepChange and National Debtline.
To make a complaint, see our complaints procedure.
Send an enquiry to My Debt Plan Ltd. Free, impartial debt advice is also available from MoneyHelper.
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