An IVA is a formal and legally binding arrangement between your customer and their creditors. By providing both parties with certain legal protections, it gives them the breathing space they need to solve their debt problems.

This form of debt help couldn't be simpler. All they have to do is pay the agreed monthly amount, usually over a period of five years (60 months), taking care to inform our IPs (Insolvency Practitioners) of any change in their circumstances which could affect their income or assets, either negatively or positively.

Once the arrangement has been signed and is in place, legally their creditors must stop all further interest and charges being incurred on their debts. As a result, all letters and phone calls from their creditors in relation to their debts should then cease. At the end of the period of 60 months, assuming they have kept to the (legally binding) arrangement, any outstanding debt is then written off.

The minimum criteria we would consider for an IVA is as follows:

• Your customer must have three or more creditors
• They must be able to provide evidence that they are struggling with payments
• They must have more than £15,000 of unsecured debt
• Proof of income must be provided
• Proof of UK citizenship (IVA specific for England and Wales)