IVA

If you’ve lost control of your finances an IVA could get you back on track.

 An Individual Voluntary Arrangement (IVA) is a legally binding agreement with your creditors to pay back a percentage of your debts over a set period of time.

A licensed Insolvency Practitioner is appointed to assess your circumstances and formalise the agreement which can sometimes require the disposal of some personal assets. An IVA typically lasts 5 years, though can be 6 years in some cases.



After allowing for necessary living expenses, the remainder of your income is paid to the insolvency practitioner, who after deducting any fees will distribute payments to your creditors. Home owners may have to remortgage their property in the fourth year to release equity to their creditors.

Entering into an IVA is not guaranteed, as creditors holding at least 75% of your debt by value must agree to or not vote against the IVA. Once the IVA is agreed, creditors cannot add fees or charges to the debts and will not chase you for any further payments. Additionally, once the IVA is complete, any remaining debt is written off.

Anyone entering into an IVA must be sure they can see it through to completion as if an IVA fails, under certain circumstances, the Insolvency Practitioner may have to file for their bankruptcy.

Gemstone provide access to market leading Insolvency Practitioners to guide you through the process of entering into an IVA. All costs for the IVA are met from your affordable monthly payment.  For further info visit debt help.