Last reviewed: June 2026 · For use in England & Wales · eLitigant is a Community Interest Company (No. 16566612), not a law firm. Always check the current official form on GOV.UK before you file, and sign the statement of truth yourself.
In short
An Individual Voluntary Arrangement (IVA) lets someone in personal debt repay what they can afford over a fixed term — usually 60 months — with remaining debts written off at the end. The proposal must meet the Insolvency Rules 2016 and is approved if 75% by value of voting creditors agree (subject to a 50% unconnected-creditor test). A regulated Insolvency Practitioner is required to act as nominee and supervisor, but you can prepare much of the paperwork yourself first. Choose a named, regulated, ideally local independent IP — and check the official register.
The shortcut: eLitigant’s Chris drafts the document for you to this standard, from your details — you check, sign and file. A Community Interest Company, not a law firm; information, not advice.
① Draft it from scratch
Chris drafts your full IVA proposal, Standard Financial Statement and statement of affairs from your facts — Protocol-compliant where suitable, or bespoke where the Protocol doesn’t fit.
Before you pay anyone — do as much yourself as you can
Insolvency Practitioners are regulated — but the “advisers”, lead-generators and middlemen around them often are not. Be wary of upfront fees before any work is done, pressure to liquidate quickly, unsolicited calls or texts after you search online, and anyone who isn’t a named, regulated IP. Many early steps — talking to creditors, the moratorium, the paperwork — you can handle yourself with Chris.
When you genuinely need a practitioner, consider a local, independent, qualified Insolvency Practitioner. You are more likely to get a personal service, a named contact and clear, fair fees — rather than being one case among thousands.
Always check they are regulated, on the official register:
• England & Wales — the Insolvency Service’s register of authorised insolvency practitioners (gov.uk)
• Scotland — Accountant in Bankruptcy (AiB)
• Or check membership of the IPA, ICAEW or ICAS.
② Check the draft you’ve written
Already have a proposal or SFS? Upload it and Chris reviews it against your own figures and correspondence before you put it in front of your IP or creditors.
③ You’ve been served — respond
Facing creditor enforcement, a breach notice or a bankruptcy petition? Run it by Chris, who can draft an interim order application, variation proposal or supporting witness statement.
An IVA lets someone in personal debt repay what they can afford over five years, protect their home, and emerge on the other side with debts written off. For the right profile — regular income, equity worth protecting, multiple unsecured debts — it is the best tool in the statutory debt-solution box.
Work alongside your Insolvency Practitioner — not against them. The IP role is statutory and cannot be replaced. What Chris replaces is the solicitor or paralegal drafting that surrounds the IP’s work. Directors who arrive with clean drafts get faster, cheaper outcomes.
Redraft to Queen’s English perfect — professional standard, within reach.
Facing this as a director?
Time matters in insolvency. Chris drafts the documents this guide describes — to a high, professional standard, the same day. For ongoing matters, Express Case covers the whole procedure, document by document.
Like a court clerk, we explain how to use the tools — we don’t advise on your case.
When IVA fits
- Unsecured debts of £10,000+ (some IPs set higher thresholds)
- Regular income able to afford monthly contributions
- Homeowner with equity that would be at risk in bankruptcy
- Profession with licence issues affected by bankruptcy (financial services, solicitor, some HR roles)
- Desire to avoid the bankruptcy register
The IVA structure
- Fixed term — usually 60 months (5 years)
- Monthly contributions based on surplus income (SFS — Standard Financial Statement)
- Equity release in year 4 or 5 for homeowners (remortgage if possible; if not, an extension of 12 months with continued contributions)
- Supervisor distributes contributions to creditors pro rata
- At end of term, remaining debts written off
The proposal
Under IR 2016, the proposal must contain:
- Details of the debtor and their affairs
- Assets, liabilities, income, expenditure
- Proposed contributions and duration
- Treatment of preferential and secured creditors
- Nominee and supervisor details
- Any equity provisions
- Protocol-compliant or bespoke terms
Let Chris draft the document pack
Arrive at your IP meeting with proposal, statement of affairs, and creditor correspondence already drafted. The IP reviews, signs off, administers. Your total legal cost comes down.
The IVA Protocol
The “IVA Protocol” (agreed between industry bodies and major creditors) standardises terms for consumer IVAs. Protocol-compliant proposals are more likely to be approved by protocol signatories (all major banks, major debt-buying companies). Chris drafts protocol-compliant proposals where suitable, or bespoke proposals where the Protocol doesn’t fit.
The creditors’ decision
- 75% by value of those voting approves
- 50% of unconnected creditors must approve (connected creditor cap)
- Approval binds all unsecured creditors with proper notice
- Secured and preferential creditors not bound unless they agree
The interim order
Where creditors are enforcing or a bankruptcy petition looms, s.252 IA 1986 interim order stays proceedings for 14 days (extendable to allow creditors’ vote). Chris drafts the interim order application with supporting witness statement.
Failure and termination
If the debtor falls more than 3 contributions behind, the supervisor usually issues a breach notice. Failure to cure leads to termination. Consequences can include bankruptcy petition by the supervisor. Drafting anticipatory variation proposals keeps most IVAs alive through temporary hardship.
What Chris drafts
- Full IVA proposal (Protocol or bespoke)
- Standard Financial Statement with evidence schedule
- Statement of Affairs
- Interim order application + witness statement (where required)
- Creditor correspondence during proposal and administration
- Variation applications for changing circumstances
- Annulment-of-bankruptcy application where an IVA is proposed after bankruptcy
The nominee/supervisor IP is still required. Their fee is still payable. What Chris replaces is the “pre-IP” paralegal drafting that usually precedes the IP’s work.
Prepare to win. Plan not to fail.
IVAs last five years. Draft the proposal the version of you in year five will thank the version of you in year one for.
Frequently asked questions
What is an IVA and who does it suit?
An Individual Voluntary Arrangement lets someone in personal debt repay what they can afford over a fixed term and have remaining debts written off at the end. It tends to fit people with multiple unsecured debts, regular income able to fund monthly contributions, home equity that would be at risk in bankruptcy, or a profession with licence issues affected by bankruptcy — and who want to avoid the bankruptcy register.
How is an IVA structured?
An IVA usually runs for a fixed term of 60 months (five years). Monthly contributions are based on surplus income calculated through the Standard Financial Statement, with equity release for homeowners typically in year four or five. A supervisor distributes contributions to creditors pro rata, and at the end of the term remaining debts are written off.
What must the IVA proposal contain?
Under the Insolvency Rules 2016, the proposal must set out details of the debtor and their affairs; assets, liabilities, income and expenditure; the proposed contributions and duration; the treatment of preferential and secured creditors; the nominee and supervisor details; and any equity provisions — drafted either Protocol-compliant or on bespoke terms.
How do creditors approve an IVA?
An IVA is approved where 75% by value of those voting agree, subject to a separate test that at least 50% of unconnected creditors approve (the connected-creditor cap). Approval binds all unsecured creditors who had proper notice. Secured and preferential creditors are not bound unless they agree.
Can an IVA stop creditors enforcing while it is proposed?
Where creditors are enforcing or a bankruptcy petition looms, an interim order under section 252 of the Insolvency Act 1986 can stay proceedings, with the period extendable to allow the creditors’ vote. Chris can draft the interim order application with a supporting witness statement.
What happens if I fall behind on contributions?
If the debtor falls more than three contributions behind, the supervisor usually issues a breach notice, and failure to cure can lead to termination — potentially a bankruptcy petition by the supervisor. Drafting an anticipatory variation proposal can keep most IVAs alive through temporary hardship.
Draft your IVA proposal pack today
One day · one matter · unlimited drafts · no subscription · you remain the litigant in person
Related guides: Creditors’ Voluntary Liquidation (CVL) · Pre-Pack Administration · N244 application notice · The Director’s Liquidation & Restructuring Strategy · All civil court forms
See also: DIY company insolvency & rescue — every option compared, and how to cut the insolvency-practitioner fees.