Learn about IVAs

How much debt will you have to pay back with an IVA?

It really depends on your individual circumstances. Your Insolvency Practitioner (who will propose and supervise your IVA) will look at all your finances and work out exactly how much you can afford to pay back each month.

They'll organise it so that each of your creditors gets a portion of the money you pay each month.

Once your IVA is finished (usually after 5 years) any outstanding debt you have will be written off and you can make a fresh start with your finances.

It might seem odd that your creditors would agree to you starting an IVA because they know they are only going to get a portion of the money you owe them back. Creditors usually agree to an IVA as they would prefer to recover at least some of what you owe, rather than risk recovering nothing which may happen in bankruptcy.

It's important to know that if you don't keep up with the repayments that are designed to suit your needs; your creditors can force you into bankruptcy through the courts in an attempt to recover as much of your debt as possible.

Find out what you qualify for »