Some debt may be written off
An IVA allows you to write off a portion of your debt once you’ve completed the agreed repayment term. This helps reduce the overall amount you need to repay.
Write off up to 71% of your debt with an IVA*
- One affordable monthly payment
- Stop interest and charges
- We’ll manage your creditors for you
*Once completed, any outstanding eligible debt included in the IVA will be written-off. The median average debt written off by our customers who completed their IVA in 2025 was 71%.
We’ll explain all fees and risks clearly, so you can make an informed decision.
To discover more about how to manage your debt and to receive free debt advice, you can visit www.moneyhelper.org.uk.
To discover more about how to manage your debt and to receive free debt advice, you can visit www.moneyhelper.org.uk.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors that sees you pay towards your debts over a set time period, usually 5 or 6 years.
An IVA is available to people in England, Wales and Northern Ireland and is subject to acceptance.
An IVA is a legally binging agreement between you and your creditors and, as such, your creditors must stick to it. Once it ends, any outstanding eligible debt included in the IVA, is written off.
While you are in an IVA, your creditors must stop chasing you for repayment and they are not permitted to charge interest on your debts. Any contact between you and your creditors goes through the Insolvency Practice acting on your behalf.
During the IVA, you’re required to make agreed payments. If you don’t stick to the terms of the IVA, the IVA may fail and an alternative solution will be needed.
IVA example
This example is based on a typical customer, with £27,000 of unsecured debts who completes a 5 year IVA and has no equity in any property.
David
£27,000 total debt
Debt includes
- Bank loan £20,000
- Credit cards £3,500
- Payday loans £1,000
- Overdraft £2,500
Monthly Debt Repayments
£495 previous payment
On an IVA with MoneyPlus
£130 new monthly payment
Total amount repaid £7,800
Reduced by 71%*
*Once completed, any outstanding eligible debt included in the IVA will be written-off. The median average debt written off by our customers who completed their IVA in 2025 was 71%.
“
It’s taken so much stress away… they’ve really given me my life back.
– Karen, Gloucestershire
Originally owed over £137,000 to 18 different companies
IVA Pros & Cons
Before committing to an IVA, it’s important to consider all the advantages and disadvantages.
Protection from creditors
Once an IVA is in place, creditors cannot take legal action against you or chase you for payments, offering relief from constant calls and letters.
Personal assets are protected
IVAs do not require you to sell your home but you may be required to sell your car if you have a high value vehicle.
Interest is frozen
During an IVA, interest and charges on your debts are frozen, meaning your repayments directly reduce what you owe rather than just covering interest.
Ongoing support
A licensed Insolvency Practitioner (IP) will manage your IVA, offering guidance and support throughout the repayment period to help you stay on track.
Your credit score will be impacted
An IVA remains on your credit file for six years, making it harder to obtain credit, including loans, mortgages, and credit cards.
Not all debts are covered
IVAs only apply to unsecured debts like credit cards and personal loans. Secured debts, such as mortgages or car finance, must still be repaid separately.
Strict budgeting is required
You must adhere to a set budget for the duration of your IVA, which can last up to six years, requiring significant lifestyle adjustments.
Your name is made public
An IVA is recorded on the Individual Insolvency Register, which can be accessed by anyone, including employers, landlords, and lenders.
Creditors must agree
For an IVA to go ahead, at least 75% of creditors (by debt value) must approve it. If they reject it, you may need to consider alternative debt solutions.
You must comply with the terms of the IVA
As an IVA is a legally binding agreement between you and your creditors, if you don’t stick to the terms of the IVA, the IVA may fail and an alternative solution will be needed.
What debts does an IVA cover?
Buy now, pay later
Credit card
Overdraft
Payday loan
Store card
Bank loan
Buy now, pay later
Credit card
Overdraft
Payday loan
Store card
Bank loan
How we help:
We know dealing with debt can feel like a lot. We keep things clear and straightforward, and our experts support you through each step.
Here’s how it works.
Contact us
Start online with our debt advice tool or speak with an expert advisor. We’ll listen to you and understand your debt situation.
Discover your options
We’ll tailor advice to your situation and recommend the best way forward. Whether that’s one of our plans or something else, we’ll always do what’s right for you.
Move forward
If a managed solution is right for you, we’ll contact your creditors and tell them you’re with MoneyPlus. If not, we’ll show you who can help.
Why choose MoneyPlus?
Simplify your debts
One affordable monthly payment, no more juggling debts
Breathe easier
2 in 3 people feel less stressed since getting support*
Personalised advice
97% say our advice fits their situation*
Simplify your debts
One affordable monthly payment, no more juggling debts
Breathe easier
2 in 3 people feel less stressed since getting support*
Personalised advice
97% say our advice fits their situation*
*MoneyPlus customer survey 366 respondents May 2025
Still not sure?
We understand that no two money worries are the same.
That’s why we tailor our support to your situation, helping you find the right way forward.
Not ready to chat? Start with our online advice.
