An IVA is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. It must be set up by an insolvency practitioner. All insolvency practitioners must follow a protocol when setting up and managing the IVA.

There is a voluntary code of practice, called the IVA Protocol, which all insolvency practitioners and most creditors have signed up to.

The aim of the protocol is to make sure the processes involved in an individual voluntary arrangement (IVA) are clear and fair. The protocol provides a standard format for all straightforward consumer IVAs.

The protocol sets out a standard approach to:

• the content of the proposal
• the way income and expenditure is assessed
• how equity in the home is dealt with
• terms and conditions included in the IVA

You will be suitable for an IVA under the protocol if you have a regular income and have at least three debts with two or more creditors.

• You can find the IVA Protocol on GOV.UK

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