Individual voluntary arrangement (IVA) protocol 2021
The 2021 IVA Protocol should not be used after 30 June 2025 . These documents are for reference only.
Documents
Details
Access the 2025 Individual voluntary arrangement (IVA) protocol and related documents.
An individual voluntary arrangement (IVA) is an agreement between a person in debt and his/her creditors. It is a formal (contractual) agreement and can be as flexible as the individual’s circumstances allow.
The protocol aims to make the handling of consumer IVAs as straightforward as possible, supporting the valid public policy objective of providing debt relief for individuals in financial distress. Whilst also putting the person at the centre of this process, making it easy to understand along with the associated paperwork and the impact an IVA will have on their lives.
Standard framework
The IVA protocol is a standard framework for dealing with consumer IVAs. It applies to both IVA providers and creditors.
By accepting the content of the protocol, IVA providers and creditors agree to follow the processes and agreed documentation that form part of the protocol. Using it to draw up proposals based on the standard documentation that follows the protocol.
Creditors are expected to abide by the terms of the protocol in relation to proposals drawn up on that basis.
Consumer IVAs
A person suitable for a straightforward consumer IVA is likely to be:
- be in receipt of a regular sustainable income other than State benefits or State pension
- have multiple debts with a combined total of £7,000 or more
- have uncomplicated assets
- not otherwise be able to repay their debts in full within the proposed IVA period
- not be eligible for a debt relief order.
Operation of the IVA protocol
The IVA Standing Committee was set up to meet regularly and provide information about the operation of the IVA Protocol, in particular:
- how it interacts with the IVA regime generally
- to identify problems/issues arising in the operation of the Protocol at an early stage
- to act as a discussion forum for stakeholders and ensure that information concerning the operation of the IVA regime generally and particularly Protocol cases can be effectively shared and discussed
- to review periodically the Protocol and its standard terms and conditions to ensure they are fit for purpose and to make any changes that are needed