‘Individual voluntary arrangements’ or IVAs – how to check if they’re right for you

On the programme on 29 April 2025, we looked into IVAs – an arrangement that allows an individual to restructure and manage the money that they owe, with assistance from an insolvency practitioner who negotiates any repayments on their behalf. We reported on the increasing concerns that some unscrupulous firms, instead of helping those in debt, have left people even worse off.

In HQ we spoke to Anne Pardoe from Citizens Advice and personal finance expert Sarah Pennells, whose advice included:

• If your circumstances change during an IVA, for example if you lose your job or your income changes, you must tell your insolvency practitioner. In some cases it may be possible to agree a repayment break. On the other hand, if your income increases the insolvency practitioner may raise the amount you are repaying each month.
• Anyone considering an IVA should be aware this remains on your credit file for six years from the date it’s approved, and during that time it will be very difficult to get credit.
• Other debt solutions may be a better option for some people – such as a debt management plan, a debt relief order or even bankruptcy. If you have a relatively low amount of debt, or you don’t have much money left over once you’ve paid your bills, then an IVA probably isn’t the right solution for you.
• IVAs can be a risky product and aren’t appropriate for everyone. They come with fees paid upfront – which anyone considering an IVA should be fully aware of before agreeing to go ahead.
• If you’re unhappy with the way an individual/firm is managing your IVA, first of all complain to them and allow eight weeks for a response. After this point, you can escalate your complaint to the Financial Ombudsman Service, which is free of charge. You can also take a complaint about an insolvency practitioner to the Insolvency Service.
• Anyone struggling with debt should contact one of the free-to-use debt advice charities - Citizens Advice and StepChange – for impartial advice about the best option for you.