What is it

For you to be considered for an IVA we will need to build a full financial picture, this will need to be quite in-depth so we can ensure you get the most suitable solution to meet your needs.

You will need to provide us with details regarding your income and expenditure, if you are a homeowner, and if you have any substantial assets. In addition if you foresee any changes in circumstances i.e planning a family, changing job and job stability, these things will help us determine whether you can commit to a legally binding agreement for the associated period. Here at InControl, we gather the necessary documents for your IVA application and pass them over to a trusted partner for approval. We would earn a fee for doing this preparatory work.


Are you eligible for an IVA?

Minimum debt level £12,500

Minimum disposable income £125

Minimum of 3 creditors

Debt free expectation of between 5-7 years

You should be prepared to release equity from your property (if applicable)


See Benefits and Disadvantages for further information.

If you are eligible then at completion of your IVA your remaining unsecured debts will be written off and you will be debt free. Any debts which are not part of the IVA will remain outstanding.

If you meet the criteria for an IVA, the Insolvency Practitioner (IP) will draft the proposal that will be sent to your creditors explaining your application for an IVA. The proposal will include the monthly repayment, how this payment will be shared amongst your creditors and details of the equity-release (if applicable).

Once the proposal has been signed, it is sent to your creditors. Your creditors are then invited to a meeting to vote whether to accept the IVA. In order for an IVA to be accepted, creditors making up 75% of your debt value must agree to the proposals.

It is not compulsory for your creditors to attend the vote so acceptance would depend on who is in attendance and how they vote. Creditors can ask for the proposal to be modified and this will be negotiated for you by the IP.

Once everyone is in agreement and the proposal accepted it becomes legally binding and both you and your creditors must adhere to it.

Changes can be made to your IVA however they must be acceptable to all parties. Providing everything is adhered to, your creditors cannot take any further action or pursue you for the debt.

If you are a homeowner and you have equity in your property you may be asked to release it in the 4th year of your IVA. However if you are not a homeowner then your IVA will run for a 6th year with the possibility of a 7th year so your creditors can maximise their return.

Any cash lump sums received whilst in an IVA will need to be declared as it is likely your creditors will require a portion of it to be paid towards your debt.

Once the agreed term is completed, any remaining debt balances will be written off and you will be debt free.

IVA’s will be assessed by us and suitable candidates will be passed to our trusted partner to arrange and administer. For information on IVA costs see Fees.

If you require a professional and personal service call us now for an obligation free assessment.