IVA UK

Throughout the UK, there were almost 130,000 individual insolvencies in 2008. Roughly two thirds were bankruptcies (called sequestration in Scotland).

The others were alternative forms of insolvency including: IVAs and Trust Deeds. The vast majority were IVAs - there were almost 40,000 IVAs in the UK last year, and around 7,500 Trust Deeds. This is page is designed to help you find out more about:

IVAs in the UK

An IVA is an alternative to bankruptcy that's available to the majority of UK residents with unsecured debts of £15,000 or more - people in England, Wales and Northern Ireland may be able to repay their debts with an IVA.

Borrowers in Scotland, meanwhile, may be able to do so by entering a Trust Deed (the Scottish equivalent of an IVA).

Trust Deeds and IVAs: UK alternatives to bankruptcy

IVAs and Trust Deeds are agreements between a borrower and their unsecured creditors. They're both designed to benefit borrowers and creditors alike.

The two most obvious differences between a Trust Deed and an IVA are:

  • IVAs are normally suitable for people with unsecured debts of £15,000 or more, while Trust Deeds are normally available for people who owe £10,000 or more.
  • Most IVAs last 5 years, while most Trust Deeds last 3 years.

Apart from that, they're actually very similar.

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Trust Deeds and IVAs: the main similarities

What they both deliver:

  • IVAs and Trust Deeds both allow the borrower to reduce their monthly payments, so they can repay their debt at an affordable rate.
  • IVAs and Trust Deeds both allow the borrower to write off a portion of their debt once they've reached a successful conclusion.
  • IVAs and Trust Deeds both benefit creditors too - they know they'll recover more of the money they're owed than they would if the borrower entered bankruptcy / sequestration.
  • IVAs and Trust Deeds are both forms of insolvency that can protect borrowers from some of the consequences of bankruptcy / sequestration.
  • IVAs and Trust Deeds both protect the people who enter them - once they're in progress, creditors are not permitted to take legal action against them.

What they both require:

  • IVAs and Trust Deeds are only available to people who owe a certain amount of money to at least two unsecured creditors.
  • IVAs and Trust Deeds both need to be accepted by (a certain amount of) those creditors.
  • IVAs and Trust Deeds both represent a serious commitment on behalf of the borrower - if you're not sure you can make regular monthly payments for the duration of the IVA / Trust Deed, it probably isn't the right approach for you.

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Other debt solutions in the UK

Many people in the UK would be better off considering an alternative to insolvency. Depending on their situation, they may find one of the alternatives is more appropriate:

  • A debt management plan
  • A debt consolidation loan
  • A remortgage
  • Bankruptcy

For more information on any of these - or on IVAs or Trust Deeds, call the IVA Advisory Centre on 0800 970 5489.

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Speak to our IVA team on: 0800 970 5489

Alternatively to apply for a free call-back click here

Subject to eligibility and acceptance. Debt write off applies only on completion, alternative solutions may be offered. Initial advice is free, fees payable for continuing services. Your ability to obtain credit will be affected for 6 years. Homeowners may be required to release the equity in their property. Calls may be recorded.

Our debt advisers are helping 1000s of people each month.

For a confidential debt assessment, call:
0800 970 5489


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