If you thought you were the only one in serious debt, think again. As debt steadily increases throughout the UK, thousands of people are choosing solutions like an IVA to help them manage debt.

But what is an IVA, exactly?

An Individual Voluntary Arrangement, commonly referred to as an IVA, is a debt solution that helps many people avoid going through the severity of bankruptcy. It's a legally binding agreement with your creditors which usually lasts five years. During this period you pay back what you can realistically afford every month and the rest is written off, in settlement of your debt.

What happens in an IVA?

An Insolvency Practitioner will help you prepare your Individual Voluntary Arrangement proposal, tailored to your financial situation. Before an IVA is approved, the creditors that represent 75% of your total debt must agree to the terms.

After that, you will no longer have to deal with your creditors; instead you make fixed monthly payments, usually over a five year period. By keeping to the terms of your IVA, any outstanding debt at the end of the period can be written off.

How can I start one?

If you want to take the next step to manage debt, we can recommend who you can speak to. Click to find out how to arrange an IVA and also get some confidential advice to help you get out of debt.