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Managing the individual voluntary arrangement over time

This advice applies to England

This page tells you how an Individual Voluntary Arrangement (IVA) is managed over time by the insolvency practitioner.

An IVA is a formal and legally-binding agreement between you and your creditors to pay back your debts over a period of time.

Managing the IVA

Once your IVA has been agreed by your creditors, it becomes legally binding. The court will appoint your insolvency practitioner (IP) to become the supervisor of the IVA. Your IP will make sure your creditors receive your payments on time.

You must stick to all the terms of the IVA and make your payments on time. If you have any problem paying, speak to your IP straight away.

What if your circumstances change?

If your circumstances change, you must tell your IP straight away. This includes if:

  • you move home
  • your work or financial situation changes
  • your income goes up or down.

You will usually be able to change (vary) your IVA if your financial circumstances change.

How will the payments work?

You will pay one monthly amount to your IP and they will pass that on to your creditors. They may take some of your monthly payment to cover their fees.

What will happen to your assets included in the IVA?

If you have assets included in the IVA, the IP will collect them and sell them. They will then pay the money from the sale to the creditors.

What will happen to your home?

If there is equity in your home, you may have to remortgage it in the final year of your IVA, to raise a lump sum towards paying off your debts.

Annual reviews

Once a year your insolvency practitioner will review the IVA. They will look at your financial circumstances and ask to see paperwork including bank statements and payslips.

Can you get more credit while on an IVA?

An IVA is likely to affect your credit rating. You may find it difficult to get credit in the short term.

Adding a debt to your IVA

If you find out about another debt you owe you should tell your insolvency practitioner straight away.

Can you cancel the IVA?

You can end your IVA if it isn’t working out for you but make sure you talk to your IP before you make a decision. You will need to consider other options for dealing with your creditors if the IVA is cancelled.

Other useful information

There is a voluntary code of practice, called the IVA Protocol, which all insolvency practitioners and most creditors have signed up to. The protocol makes sure the processes involved in setting up and managing an IVA are clear and fair. It also sets out the terms and conditions all parties must follow.

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