What does IVA stand for?
This guide covers England and Wales
The short answer
IVA stands for Individual Voluntary Arrangement. It is a formal agreement with the people you owe money to, to repay all or part of your debts.
You make regular payments to an insolvency practitioner. They share the money between your creditors.
Last checked against GOV.UK: Options for dealing with your debts, IVAs on 30 October 2026.
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What the three words mean
Individual means one person, not a company. Voluntary means you choose to enter it and your creditors agree to it. Arrangement means a plan for repaying that is agreed.
Who is involved
Only a licensed insolvency practitioner can arrange an IVA. They look at your income, spending and debts, and work out what you can afford.
Your creditors are the people or firms you owe. GOV.UK says an IVA starts if creditors holding 75% of your debt agree. It then applies to all creditors, including those who said no.
How long it lasts
Under the Insolvency Service key facts, you make payments over 5 years or 6 years. An IVA appears on your credit file for 6 years from the date it starts.
Where to read more
Our IVA guide explains costs, risks and what happens at the end. IVAs are for England and Wales. Scotland and Northern Ireland use different rules. Free debt advice can explain the options without selling you anything.
What to do next
Free, independent debt advice
These services are free. They will not judge you, and they can look at your whole situation.
Free debt advice charity. They can talk through all your options with you.
Call free: 0800 138 1111 (number checked on their website on 24 October 2026)
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Related guides
- What is an IVA? A plain-English guideAn IVA is a legal agreement to repay some or all of your debts. How it works in England and Wales, how long it lasts, what it means for your home.
- How long does an IVA last?Understand IVA payment terms, extensions, completion and the separate credit-file timeline. Check the terms of your own arrangement.
- IVA pros and cons: benefits and risksA balanced look at what an IVA can do and what can go wrong, including what happens if you cannot keep up your payments.