An IVA is set up and managed by an Insolvency Practitioner (IP). It is a form of insolvency which allows an individual to pay back a certain percentage of their unsecured debt in affordable monthly installments are paid back over a fixed term.
Once you enter an IVA, creditors can take no further action against you. However, your credit rating will be affected for six years and your information will be visible on the public Registers of Insolvencies for the duration of the IVA.
If you live in England, Wales and Northern Ireland, an IVA is an option available to you. Scottish residents can look to enter into a Trust Deed.