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An IVA is a legally binding agreement between you and your creditors to repay what you can afford over typically 5 years. Any remaining debt at the end is written off. An Insolvency Practitioner (IP) administers it.

You need enough surplus monthly income to make meaningful monthly payments — typically £100-£200 minimum. There's no income threshold but you must have significant unsecured debts (usually £10,000+).

The IP calculates your income and expenditure using standard expenditure allowances. Your surplus (income minus reasonable expenses) is used for IVA payments. Typically 90-100% of surplus is paid.

Eligible debts include: credit cards, personal loans, overdrafts, store cards, catalogue debt, and HMRC personal tax debts. Mortgage, student loans, fines, and child maintenance cannot be included.

This varies widely. Typically creditors receive 20-60p per £1 owed. After 5 years of payments, the remainder is legally written off. The write-off depends on your assets and income level.

Yes. An IVA is recorded on your credit file for 6 years from the start date. This makes it difficult to get credit, mortgages, or certain jobs during this period.

All IVAs are registered on the public Insolvency Register maintained by the Insolvency Service. It is freely searchable. The entry is removed 3 months after the IVA completes.

Homeowners can get an IVA but equity in your home may need to be reviewed. You may need to attempt remortgage in year 4 to release equity. If remortgage isn't possible, payments may extend for a year.

Missing payments can cause the IVA to fail. The IP may terminate it, leaving creditors free to pursue you individually. You should contact your IP immediately if you're struggling.

IVA: 5-6 years, keeps home if compliant with equity provisions, credit impact 6 years. Bankruptcy: typically 1 year discharge, home may be sold, some professions banned, credit impact 6 years.

Yes. IVA fees are included within the IVA payments — creditors agree to these at the creditors' meeting. Typical fees are £5,000-£10,000 over the term, paid from contributions.

Free debt advice: StepChange Debt Charity, National Debtline, Citizens Advice, PayPlan (free IVA service). Always get multiple opinions before agreeing to an IVA.