You apply for an IVA through a licensed Insolvency Practitioner. You cannot create one yourself, and a lead generator or introducer is not the same thing as the Insolvency Practitioner who will supervise the arrangement.
Step 1: list every debt#
Write down every creditor, balance, account number and debt type. Include credit cards, loans, overdrafts, catalogues, utility arrears, council tax arrears, HMRC debts, court judgments and debt collectors. An IVA proposal must give creditors a complete picture.
Step 2: work out your real budget#
The proposal is based on what you can afford after essential living costs. You will usually need:
- Payslips or benefit statements
- Bank statements
- Rent or mortgage details
- Council tax and utility bills
- Childcare, transport and insurance costs
- Details of assets, vehicle value and home equity
Do not inflate your surplus to make the IVA look more likely to pass. An unaffordable IVA is more likely to fail later.
Step 3: compare alternatives#
Before an IVA proposal is signed, the adviser or Insolvency Practitioner should compare alternatives such as a Debt Management Plan, Debt Relief Order, bankruptcy, settlement and Breathing Space. The 2025 IVA Protocol specifically says available options, advantages and disadvantages should be explained clearly enough for you to decide whether an IVA is best.
Step 4: review the proposal#
If an IVA is suitable, the Insolvency Practitioner acting as nominee drafts a proposal. Read it carefully before approving it. Check:
- Monthly payment
- Term length
- Fees and disbursements
- Treatment of home equity
- Treatment of windfalls, bonuses and overtime
- What happens if you miss payments
- Which debts are included or excluded
Step 5: creditor vote#
Your creditors vote on the proposal. GOV.UK explains that the IVA starts if creditors holding 75% of your debts agree to it. In practice, voting is handled by the Insolvency Practitioner. If approved, the IVA binds included creditors, including creditors who voted against it or did not vote.
Step 6: make payments and complete reviews#
Once approved, you make the agreed monthly payment to the supervisor. They distribute money to creditors after fees and costs. Your income and expenditure are reviewed each year. If your circumstances change, contact the supervisor early so they can consider a payment break, variation or other route.
Before you sign#
Ask for the Insolvency Practitioner’s name, licence number, firm, fees and expected creditor return. If you are only speaking to an introducer, ask which licensed firm will supervise the IVA and whether any referral fee or commercial relationship applies.
Related questions#
- Apply for an IVA
- IVA companies
- Is an IVA worth it?
- IVA disadvantages
- How much does an IVA cost?
- Can you be scammed with an IVA?
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