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Individual Voluntary Arrangement

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About IVAs & PTDs

An IVA (Individual Voluntary Arrangement) is a form of insolvency for people who are in severe debt, who do not see their situation improving in the near future. A PTD (Protected Trust Deed) is the Scottish equivalent. We do not currently offer a service for PTDs, nor does our Insolvency Practitioner at this time.

As forms of Insolvency, these solutions are more formal agreements with your creditors and are legally binding. This formal arrangement ensures that the creditors will not take legal action against you, contact you or increase the balance as long as the agreement is maintained and the IVA is in place.


  • If you live in Scotland then the IVA Equivalent is a Protect Trust Deed, or PDT. Click here to find out more – Protected Trust Deed

How do Individual Voluntary Arrangements work?

In an Individual Voluntary Arrangement payments are typically fixed and therefore ideal for people with steady jobs and fixed incomes, who are able to commit to the solution for the usual 5 year period.

Fresh Start UK Debt Management uses an approved panel of companies to provide insolvency work, including IVAs, Protected Trust Deeds, Bankruptcy and Sequestration. As forms of Insolvency, an Insolvency Practitioner administers and organises the process. These specialists are separately licenced and regulated and we ensure we only work with the best companies out there.

If you are eligible for an Individual Voluntary Arrangement, the Insolvency Practitioner will call a meeting of creditors and negotiate the terms of the agreement based on the amount of debt you have and the amount you can pay each month. If 75% or more of the creditors accept the terms of the IVA it is then approved and all creditors are bound by the terms.

Does debt get written-off in an IVA?

In the creditors meeting your Insolvency Practitioner will negotiate discounts on your debts. The discounts are given upon successful completion of the IVA and can be from around 30%-45% of the debt, making a total discount of 55%-70%. Although a typical IVA is over 5 years, it is important to know that your credit rating will be affected for 6 years.

Do I need an IVA?

If you have a substantial amount of unsecured debt, usually over £8,000 or more and are struggling or behind with payments, an Individual Voluntary Arrangement could be your best debt solution.

An IVA acts as a legally binding agreement between you and your creditors, effectively freezing interest and charges in return for monthly payments over an agreed fixed period, usually 5 years. Credit Cards, Unsecured Loans, Overdrafts and Payday Loans are able to be included in an IVA. Crown Debt and secured debts are not typically accepted however.

Am I eligible for an IVA?

There are many factors to take into account when deciding if someone is eligible and we have included some of the main point that are considered below

  • Are you a homeowner with equity?
  • Do you have a steady and secure income?
  • Do you have any unnecessary or unmanageable assets?
  • Is your monthly expenditure reasonable?
  • Can you afford an IVA? (see below?)

When considering if an Individual Voluntary Arrangement is right for you, an Insolvency Practitioner will consider all of the above and advise on what is acceptable and unacceptable. As a form of Insolvency and subject to legal process, before processing an IVA all considerations must be taken into account.

Who much do I pay in an IVA?

The total you will pay depends on the Insolvency Practitioners Fees, the term of the agreement (though typically over 5 years), the amount you pay each month and the final discounts agreed with your creditors.

We have provided an example of a typical IVA below:

  • Total Debts £30,000
  • Term of 5 years (60 months)
  • Discount £21,620
  • Payable 40% (including fees)
  • Total Payable including fees £12,000
  • Monthly Payment £200

If you are realistically able to commit to paying 30-45% of your debts over 5 years then you are probably able to afford an IVA and all associated fees. A good Insolvency practitioner may be able to get a lower rate, but if you would not usually pay more than 45%. However, as a form of Insolvency and therefore subject to legal process and approval, being able to afford an IVA does not mean you are necessarily eligible. It is important to know that you may also be expected during the course of the agreement to remortgage and release the equity to pay off some or all of the debts.

What are the fees in an IVA?

IVA Fees

The Insolvency Practitioner will charge a fee for its role as supervisor and as nominee. There are separate fees associated with each role and they are charged separately. There will also be additional expenses charged, typically to cover the process of payments.

Nominee Fees

The Nominee fee is a fixed fee and covers the setting up of the proposal to your creditors by the Insolvency Practitioner. The Nominee fees come from the first payments you make into your IVA, meaning your creditors will not be paid and go further into debt.

Supervisors Fees

The fees of the supervisor are based on the individual case and therefore vary. We have provided an example below though:

Example of Fees (based on £30,000 total debt)

  • Total paid (including fees below) – £12,000
  • Total debt written off (on completion) – £21,620 (72%)
  • Monthly payments – £200
  • Term – 5 year (60 months)
  • Nominee’s fee (already included in the payments) – £1,000
  • Supervisor’s fee (already included in the payments) – £1,650
  • Disbursements incurred (already included in the monthly) – £970
  • Total Fees – £3620

What if my IVA fails?

It is important to ensure if you go-ahead with an IVA that it is the right decision for you and you are able to maintain the agreement. If an IVA fails you will still owe the balances, and any discount will not be applied. Furthermore, as most of the Insolvency Practitioners fees are taken at the start of the IVA, you may not have paid much or any of the balances. Failure to maintain the IVA will leave you liable for any outstanding fees charged by the Insolvency Practitioner and potential further action from your creditors.

What do I do now?

If you are considering an Individual Voluntary Arrangement or any other form of Insolvency or Debt Management then we would be happy to hear from you. For further information or just some friendly help call either 08009 247 244 or 01482 247 999. You can also contact us via our Contact Page. For you convenience we have also provided a link to the Insolvency Service Site – here.



Subject to eligibility and acceptance. Conditions apply. Debt write off applies only on completion of an IVA, (Individual Voluntary Arrangement) alternative Debt Solutions may be offered. Each IVA (Individual Voluntary Arrangement) application is assessed on an individual basis, once the preliminary work is carried out the case is passed to an Insolvency Practitioner at one the companies on our panel to administer. No advice is provided by Fresh Start UK. Fees payable for continuing services. Your ability to obtain credit will be affected for 6 years. Homeowners may be required to release the equity in their property. Calls may be recorded.