How long does it take to set up an IVA?

The time it takes to set up an individual voluntary arrangement (IVA) varies depending on a number of factors. On average though, for customers who are referred to our sister company, the full process takes about 21 days.

The rest of the information in this guide refers to how long the IVA process takes for customers who use our sister company. This may be slightly different from other IVA providers.

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What factors affect how long it takes to set up an IVA?

How long it takes to set your IVA depends on a few things, such as:

how quickly you can gather the information and documents needed
whether you need to set up a new bank account with a lender you don’t owe money to
if there are unusual circumstances surrounding one of your assets and the insolvency practitioner (IP) needs more information e.g. if your house was signed over to your ex in a divorce settlement

Preparing the documents you’ll need for an IVA

When you’re looking to enter an IVA, you’ll need:

your income details, including payslips or bank statements
a list of all your debts, along with your creditors’ details
monthly expenses, like rent, utilities and groceries
valuations of any assets you own, such as property or cars
proof of identity, like a passport or driver’s licence

Your IVA provider will explain exactly what they need and how to get this information. Once you’ve supplied all the necessary documents, you’ll receive a welcome call to:

run through the information you’ve provided
make sure you understand the ins and outs of an IVA
answer any questions you have

Drafting your IVA

If you confirm you want to go ahead with an IVA, your IP will use the information you’ve provided to draft your IVA proposal. They will generally send this back to you for approval within 24-48 hours.

As well as your IVA proposal, they’ll also send you:

the IVA protocol – this is a voluntary agreement that sets out how IVA providers should operate, intended to make the process quicker and simpler for everyone involved
their terms
a booklet on alternative debt solutions

You can take as long as you like to look over your proposal and the rest of the information sent.

Your provider will allow you as much time as you need to mull things over. They’ll also happily answer any questions you’ve got and, if you want to talk things through, they’ll set up a meeting in person or via video call.

You won’t be rushed as it’s important you understand exactly what you’re signing up for.

The creditors’ vote

Once you’re happy with the proposal, your IP will put it to your creditors who’ll vote on whether or not to accept it. They’ll get a minimum of 14 days to cast their vote.

If creditors need more time to decide or additional information, the deadline can be extended by up to a further 14 days.

Providing 75% of votes (by value of debt) accept the proposal, your IVA will be approved and take effect immediately.