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Setting up an Individual Voluntary Arrangement

Who Can Set Up an Individual Voluntary Arrangement

Anyone with personal debts in excess of £15,000 can consider setting up an Individual Voluntary Arrangement.

In order for your Individual Voluntary Arrangement proposal to be accepted by your creditors, you need to be able to make regular monthly debt repayments.

Although the amount that you will be expected to pay via your Individual Voluntary Arrangement will vary according to the size of your debt, you will probably be asked to pay at least £200 a month.

Alternatively, if you have equity in a home or other valuable asset, your Individual Voluntary Arrangement might also be accepted as you could pay a lump sum.

What Type of Debts Can be Included in an Individual Voluntary Arrangement

In most cases, any unsecured debts can be covered in an Individual Voluntary Arrangement. Examples of such debts include:

  • Credit card debts
  • Personal loans
  • Store cards
  • Overdrafts

Debts to the Inland Revenue and the VAT office can also be included in an Individual Voluntary Arrangement.

What Type of Debts Can’t be Included in an Individual Voluntary Arrangement

There are certain types of debt that can’t be included in an Individual Voluntary Arrangement. For instance, secured debts, fines, rent and council tax arrears can’t be covered by an Individual Voluntary Arrangement.

How to Get Started Setting up an Individual Voluntary Arrangement

An Individual Voluntary Arrangement is a legally binding agreement. Therefore, you need to use an insolvency practitioner to propose an Individual Voluntary Arrangement to your creditors.

An insolvency practitioner is an accountant who is licensed to negotiate Individual Voluntary Arrangements.

We work with experienced and reputable insolvency practitioners. If you would like to set up an Individual Voluntary Arrangement with us then please click here to complete an application form.

If you would prefer to speak to an Individual Voluntary Arrangement first then please:

a) Call us on freephone 0800 138 5445

or

b) Fill in this short form and an Individual Voluntary Arrangement advisor will call you back at a time that is convenient to you

How Much Does an Individual Voluntary Arrangement Cost

Our insolvency practitioners will not charge you to set up an Individual Voluntary Arrangement.

Most insolvency practitioners take their fees from the Individual Voluntary Arrangement fund that is paid to your creditors.

Therefore if you set up an Individual Voluntary Arrangement with us, you will not have to pay more than the monthly payment that you have agreed with your creditors.

In other words, it is your creditors, not you, who are paying the insolvency practitioner’s fee.

Individual Voluntary Arrangement Process

Once you’ve chosen an insolvency practitioner, the process of setting up your Individual Voluntary Arrangement begins.

Step 1

The insolvency practitioner will prepare an Individual Voluntary Arrangement proposal for your creditors based on how much you can afford to repay and over what period of time.

Step 2

An Interim Order is filed which means that your creditors cannot file bankruptcy proceedings against you or harass you for payment.

Step 3

The Individual Voluntary Arrangement proposal is sent to your creditors who vote on whether or not to accept it. If 75% of the creditors agree to accept your Individual Voluntary Arrangement, then it becomes legally binding.

Step 4

You have to make payments to your creditors according to the terms of the Individual Voluntary Arrangement.

Step 5

Once your Individual Voluntary Arrangement has been completed, your debt is deemed to have been cleared and any outstanding balance is written off.