The IVA Process - Step by Step Guide

Understanding the IVA Journey

Getting an Individual Voluntary Arrangement involves several key stages. This guide walks you through each step so you know exactly what to expect.

The 6 Stages of an IVA

Stage 1: Initial Assessment

The journey begins with understanding whether an IVA is right for you.

What happens:

  • Review your financial situation
  • List all debts and creditors
  • Document your income and expenditure
  • Explore whether an IVA is the best solution

Duration: 1-2 weeks

Learn more about Initial Assessment →

Stage 2: Choosing an Insolvency Practitioner (IP)

You must work with a licensed IP to set up an IVA. Choose carefully.

What happens:

  • Research licensed IPs
  • Compare fees and services
  • Have initial consultations
  • Select your IP

Key considerations:

  • Is the IP licensed and regulated?
  • What are their fees?
  • Do they explain things clearly?
  • What is their success rate?

Duration: 1-2 weeks

Learn how to choose an IP →

Stage 3: Proposal Preparation

Your IP helps you create a formal proposal to present to your creditors.

What happens:

  • Detailed financial assessment
  • Calculate affordable monthly payment
  • Draft IVA proposal document
  • Include assets, income, and circumstances
  • Submit to creditors

Documents needed:

  • Proof of income (payslips, tax returns)
  • Bank statements (3-6 months)
  • Bills and expenditure evidence
  • Details of all debts
  • Property valuation (if homeowner)

Duration: 2-4 weeks

Understand proposal preparation →

Stage 4: Creditors' Meeting

Your creditors vote on whether to accept your IVA proposal.

What happens:

  • Creditors receive your proposal
  • They have 14 days to consider it
  • Virtual meeting held (you typically don't attend)
  • Creditors vote on acceptance
  • Modifications may be suggested

Approval requirements:

  • 75% of voting creditors (by debt value) must approve
  • Non-voting creditors are bound by the decision
  • Modifications require your agreement

Duration: 2-3 weeks

Learn about creditors' meetings →

Stage 5: Living With Your IVA

Once approved, you'll live with the IVA for typically 5-6 years.

What happens:

  • Make monthly payments to your IP
  • Annual income and expenditure reviews
  • Report significant changes (income, address, circumstances)
  • Possibly release equity from property (if homeowner)
  • Avoid taking new credit over £500

Your responsibilities:

  • ✅ Make payments on time every month
  • ✅ Cooperate with annual reviews
  • ✅ Notify IP of changes
  • ✅ Live within the agreed budget
  • ❌ Don't miss payments
  • ❌ Don't borrow without permission
  • ❌ Don't hide income or assets

Duration: 60-72 months (5-6 years)

Understand living with an IVA →

Stage 6: Completion or Failure

Your IVA reaches its conclusion - either successful completion or failure.

Successful Completion:

  • Make all agreed payments
  • Complete any equity release requirements
  • Receive completion certificate
  • Remaining qualifying debts are written off
  • IVA removed from register after 3 months

IVA Failure:

  • If you breach terms (miss payments, hide income, etc.)
  • IP may petition for your bankruptcy
  • Creditors can pursue debts again
  • All payments made are kept by creditors

After completion:

  • IVA marker on credit file for 6 years from start
  • Begin rebuilding credit
  • Financial freedom restored

Learn about completion and failure →

Typical Timeline

Week 1-2:    Initial Assessment
Week 3-4:    Choose IP
Week 5-8:    Proposal Preparation
Week 9-11:   Creditors' Meeting
Month 4-66:  Living With IVA (5.5 years)
Month 66+:   Completion & Certificate

Total duration: Approximately 6 years from start to finish

Key Things to Remember

During the Process

  • Be completely honest about your finances
  • Provide all requested documentation promptly
  • Ask questions if you don't understand something
  • Keep copies of all documents

During the IVA

  • Never miss a payment if you can help it
  • Report changes immediately
  • Keep within your budget
  • Attend annual reviews

Red Flags to Watch For

  • IPs who guarantee approval
  • Pressure to enter an IVA quickly
  • Unclear fee structures
  • Promises that sound too good to be true

Get Started

Ready to explore whether an IVA is right for you?

Need Help?

Remember: IVA Facts provides information only. For personalized advice, contact:

  • StepChange: 0800 138 1111
  • National Debtline: 0808 808 4000
  • Citizens Advice: Visit your local bureau

All offer free, impartial debt advice from qualified advisors.