IVA and bankruptcy advice

  • 20+ years of experience
  • All the support & help you need
  • Interest & charges may be frozen
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No fee is charged for initial advice. Fees apply if you enter a debt solution with us, and your credit rating will be affected. The debt solutions will be explained in full. Some solutions result in debt write-off.

Free and impartial debt advice is available at www.moneyhelper.org.uk

Debt Help UK

Debts we can help you with:

  • Credit cards
  • Payday loans
  • Store cards
  • Council tax arrears
  • Loans
  • Overdrafts
  • Catalogues
  • HMRC debts

While IVAs can help with most unsecured debts, some priority debts, such as student debts, matrimonial debts, mortgages, secured loans, or certain court fines, cannot be included and must be paid separately. For full debt advice, you can speak to one of our advisors.

If you're struggling with debts you can no longer realistically repay, two formal insolvency options are available in England, Wales and Northern Ireland: an Individual Voluntary Arrangement (IVA) or Bankruptcy. Both provide legal protection from creditors and write off qualifying debts — but they work very differently. The right solution depends on your income, assets, and personal circumstances.

Your two options explained

IVA

Individual Voluntary Arrangement

A legally binding agreement between you and your creditors, managed by a licensed Insolvency Practitioner. You make one affordable monthly payment — usually for 5 to 6 years — and any remaining debt included in the arrangement is written off on completion.

5–6 years duration Min. £7,000 debt Min. £100/mo disposable income No upfront fee
Bankruptcy

Bankruptcy

A court-based process that writes off most unsecured debts. You are typically discharged after 12 months and the remaining qualifying debts are cleared. It offers a faster resolution, but carries stricter consequences — particularly for homeowners and those with valuable assets.

~12 months duration £680 court fee No minimum debt level No creditor vote needed

Side-by-side comparison

IVA Bankruptcy
Typical duration 5–6 years ~12 months
Remaining debt written off ✓ On completion ✓ On discharge
Home protected (no equity) ✓ Generally yes ✗ At risk if equity exists
Creditor approval required ✓ Yes — by vote ✗ No — court order
Monthly payments Fixed affordable amount Only if surplus income exists (up to 3 yrs)
Credit file impact 6 years 6 years
Public insolvency register ✓ Yes ✓ Yes
Assets protected ✓ Generally kept ✗ May be sold by trustee
Employment restrictions Rarely — check your contract ✗ Certain roles restricted
Suitable for homeowners with equity With conditions ✗ High risk

Eligibility criteria

IVA — who qualifies?

  • ✓ Live in England, Wales or Northern Ireland
  • ✓ Owe at least £7,000 of unsecured debt
  • ✓ Have a regular source of income
  • ✓ Have at least £100/month disposable income after essential expenses
  • ✓ Owe money to two or more creditors

Bankruptcy — who qualifies?

  • ✓ Live in England, Wales or Northern Ireland
  • ✓ Unable to repay debts as they fall due
  • ✓ No minimum debt threshold applies
  • ✗ Not suitable if you own significant assets or property with equity
  • ✗ May not be suitable for certain professional or public roles

Costs

IVA — typical costs

No upfront fee

Fees are taken directly from your monthly payments by the Insolvency Practitioner. There is no separate out-of-pocket cost to get started. All fees are fully disclosed before you proceed.

Bankruptcy — typical costs

£680 court fee

Paid upfront to the Insolvency Service to apply online. If you have surplus income, additional payments may apply for up to 3 years. No solicitor is required to apply.

Not sure which solution fits your situation? Our advisors will review your income, debts, and assets — and explain every option clearly, with no obligation to proceed.

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How does an IVA work?

An Individual Voluntary Arrangement (IVA) is a formal agreement based on what you can realistically afford. We look at your income and essential expenses to determine a sustainable monthly payment, over a period of usually 5–6 years. The process is overseen by a licensed Insolvency Practitioner who liaises with your creditors on your behalf and supervises your arrangement.

An IVA requires creditors approval. Once approved, creditors included in the plan are legally required to stop recovery action and freeze interest and charges, provided you keep to the terms. Upon successful completion of the IVA, any remaining debt included in the arrangement is written off. Payments are distributed to creditors in line with the agreed terms of your proposal.

How does bankruptcy work?

Bankruptcy is a formal debt solution which allows you to deal with debts you can no longer manage. Bankruptcy is a way of writing off your debts if you have no other way to pay them and offers you a fresh start after 12 months.

Out of all the debt solutions available, Bankruptcy has long held a certain stigma and this stigma has often prevented people from opting for bankruptcy. However, in some circumstances, it is the most appropriate solution and should be considered.

People come to us when they are:

  • Seeking expert guidance on all available debt solutions
  • Feeling unsure about the next step to take towards managing their debts
  • Needing expert support managing creditor contact
  • Struggling to make monthly payments to their creditors
Speak to an advisor
Benefits of an IVA
  • You make affordable monthly payments usually for 5 or 6 years.
  • Unsecured debts included in the IVA are written off after successful completion.
  • Your payments will be reviewed each year to make sure you can still afford them.
  • An IVA can protect your residential property.
  • The Insolvency Practitioner deals with your creditors on your behalf and processes payments to your creditors from your payments.
  • An approved IVA prevents creditors from taking action or continuing to add further interest or charges to their debt.
  • The IVA gives your Insolvency Practitioner the power to support changes in your circumstances. For example, payment breaks.
Risks of an IVA
  • If you are a homeowner and your share of beneficial interest in your residential property is more than £10,000, the term of your IVA will be 6 years instead of 5 years. Remortgaging in the future may attract a higher interest rate.
  • In some instances, homeowners may be required to release equity from their home.
  • The IVA can fail if you do not adhere to the terms of the arrangement.  There is a risk of bankruptcy if the IVA fails.
  • An IVA requires creditors to vote whether to accept, alter or reject the arrangement. Creditors may not accept the IVA.
  • Any remaining unsecured debt included in the IVA is written off when the IVA is successfully completed.
  • An IVA means you have to live within an agreed budget for the period of the IVA, and you cannot take on new credit without your Supervisor’s consent.
  • Your credit rating will be negatively affected for 6 years, and details of your arrangement are added to the insolvency register; this is a public register.
Benefits of bankruptcy
  • Most unsecured debts are written off. Credit cards, personal loans, overdrafts and similar unsecured debts are usually written off at the end of bankruptcy.
  • Bankruptcy normally lasts around 12 months, after which you are usually discharged and the remaining qualifying debts are cleared.
  • Once you are bankrupt, most creditors can no longer contact you or take legal action to collect the debt.
  • Additional interest, fees and enforcement activity generally stop during bankruptcy.
  • Bankruptcy can allow someone overwhelmed by debt to reset their finances and rebuild their financial life.
  • You can usually keep basic household goods and items needed for everyday living or work.
  • An Official Receiver or trustee manages your case and communicates with creditors on your behalf.
Risks of bankruptcy
  • Bankruptcy stays on your credit file for six years, making borrowing more difficult.
  • Property, savings or other valuable assets may be sold to repay creditors.
  • Some debts remain payable, such as student loans, court fines and child maintenance.
  • You cannot obtain credit over a certain amount without disclosure and may face restrictions on certain roles, such as being a company director.
  • Your bankruptcy appears on the Individual Insolvency Register, which is publicly searchable.
  • If you own a property with equity, it may have to be sold or your share realised.
  • If you have surplus income, you may need to make payments toward your debts for up to three years.
  • Applying for bankruptcy in England and Wales currently costs £680.

Our 3 step process

1. Fill in the form

Tell us about your situation and and we’ll be in touch to discuss the next steps

2. Speak to an advisor

We’ll offer advice specific to your situation and explain all the solutions

3. Move forward

If you choose a solution with us, we will provide all the support you need

Take the first step today

What our clients say

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To qualify for proposing an IVA you must:

  • Live in England, Wales or Northern Ireland.
  • Have a regular source of income.
  • Owe more than £7,000 of unsecured debt.
  • Have a disposable income, after expenses of at least £100 per month.

Debt Consolidation

Debt consolidation involves taking out a single loan or credit card to pay off multiple debts.
Debt Consolidation

Debt Management Plans

A Debt Management Plan is an informal agreement between you and your creditors to repay your debts.
Debt Management Plans

Bankruptcy

Bankruptcy is a formal insolvency process used to deal with debts that an individual is unable to pay.
Bankruptcy

Debt Relief Orders

A Debt Relief Order (DRO) is a formal insolvency process for individuals with low income and few assets who are unable to repay their unsecured debts.
Debt Relief Orders

Frequently asked questions

Our team will call you to build a complete picture of your income, spending, and debts. This conversation is 100% confidential, and there is no obligation to proceed.

 

If you complete the form during office hours, we’ll usually call you the same day for a confidential chat. We’ll help you review your debts and budget and explain the best debt solutions for your specific needs.

You can also call us on 0161 868 2500 or email info@thedebtadvisor.hubsolv.com.  

We charge no fees for our initial advice. If you choose a solution with our firm, fees will apply and will be explained clearly before you proceed. You can also access free and impartial debt advice from the Government’s MoneyHelper service. 

IVAs can include debt write-off, depending on eligibility, but it isn’t guaranteed. During your advice call, we’ll explain your options so you know what may be possible in your circumstances. 

Yes. The Debt Advisor Ltd is authorised and regulated by the Financial Conduct Authority to provide debt advice and administer certain debt solutions. 

Get debt help

The Debt Advisor Ltd is authorised and regulated by the Financial Conduct Authority. This means we can provide debt advice and administer both formal and informal debt solutions for individuals and business owners. No fee is charged for initial advice. However, we are a commercial organisation and if you choose a solution we provide, fees will apply and will be clearly explained to you.

We will talk you through all the solutions available in England, Wales and Northern Ireland. This includes solutions like Individual Voluntary Arrangements (IVAs), Bankruptcy, Debt Relief Orders, Debt Management Plans, and Debt Consolidation (subject to eligibility), to help you understand which may be most suitable for your circumstances. If you live in Scotland, different solutions apply, please visit Scottish Debt Solutions.

All debt solutions should be very carefully considered. You may fall into arrears or incur further arrears during the period whilst we are negotiating reduced payments with your creditors as you are not maintaining your contractual payments. Payments made to creditors under a Debt Management Plan with The Debt Advisor are distributed within five working days. Payments made into an IVA are distributed in line with the terms of the proposal. If you enter an IVA, Debt Relief Order or Bankruptcy, your personal information will appear on the Insolvency Register which is searchable by the public.