With an individual voluntary arrangement (IVA), you could lower your unsecured debt repayments and fit them in around other financial commitments. Secured debts, such as your mortgage, will not be included in this and you will need to continue paying separately for this.
IVA debt management is a legally binding agreement between you and your creditors where you will arrange monthly payments to pay back your debt, or in some other cases, your IVA repayments will be in a lump sum. IVA help should also stop your creditors from charging interest on your current debts and they will stop chasing you for payment.
During your IVA debt consolidation, you must ensure you make the payments each month. If you miss an IVA payment, contact will be made by your practitioner and you will have a month to respond to a notice of breach. If you respond during that period, your consultant won’t take any action against you; however, if you don’t respond in time then your IVA will be canceled.
If your income changes at any point after you have applied for an IVA or throughout the duration of your IVA advice, you must let your consultant know. For example, if your income has increased, it is likely you will need to pay more and a new monthly repayment fee will be arranged. If you don’t tell your insolvency practitioner of a change in income, then you are breaking your IVA agreement.
In the case of redundancy, you will be able to keep 6 months of your redundancy money. The remaining money will then be put towards your individual voluntary arrangement repayment.
Typical debt written off is 75% – only debts added to the IVA 
