"IVA Gov" is a popular search term because many want to find out whether IVA's are an official government solution, as anything that involves a write off 50% or more of your debt can sound too good to be true.
The fact is, IVA's were introduced by the Government in 1986 and now form one of the 4 main debt solutions that individuals use when faced with the problem of solving serious debts and returning life back to financial normality. If you have an IVA arranged, it's not really a Government IVA as the Individual Voluntary Arrangement is managed by an IVA company not a government department.
However, make no mistake, an IVA is an official solution that involves IVA companies, and Insolvency Practitioners and once set-up is legally binding.
Who can use an IVA?
To to eligible for an IVA you normally have to have debts of over £15,000, with the actual average debt being closer to the £40,000 level. You'll also need to owe more than 3 creditors money and be in full time employment or have a partner working. To find out whether you're likely to qualify for an IVA try our IVA calculator.
Applying for an IVA
If you apply for an IVA, make sure you use a company offering a free IVA. To help we have reviewed most of the best IVA companies in the UK and their comparison forms part of the advice service that is accessed via our IVA calculator. Try it and see whether an IVA is the best solution for you and which company we would recommend you use for your IVA.
Summary
- Introduced by the Government in 1986 as a way of helping individuals not become bankrupt
- You need to owe more than £15,000 and you or your partner be employed
- Typically you can write-off 50% - 60% of your debt and pay the balance over 5 years (60 months)
- Interest and charges stop and creditors can't change their mind
- Your home is protected but you will be required to release any equity you have any
- It's a popular debt solution with nearly 40,000 IVA's started in 2008, that's one every 13 minutes
- We only recommend organisations that have a track record of getting IVA's accepted by creditors and don't charge fees
- Use our IVA calculator to see if you're likely to qualify
Comparison Table Of Debt Solutions
| Solutions | Debts Written Off | Legally Binding | Interests & Charges | Residential Status | ||
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Average 58%*
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Yes
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Stopped
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Tenant or Homeowner (Eng/Wales)
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Not Normally
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No
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Many Freeze
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Tenant or Homeowner
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Consolidated
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Yes
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New Rates & Charges
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Tenant or Homeowner
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Bankruptcy is a severe last resort if you are in serious debt and no other debt solution can save you from going bankrupt. Bankruptcy may protect you from your creditors and allows you to start fresh, but you need to think carefully about all the implications involved.
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*58% was the average debt write off with an IVA, April - June 2008, CCCS
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