Individual Voluntary Arrangements are very serious matters, they are not a quick fix, nor are they a complete solution to debt problems.

Before taking out an IVA careful thought and consideration has to be given to your personal circumstances and the IVA pros and cons. Anyone considering an IVA must be in serious difficulties and should seek advice from an impartial group such as the Citizens Advice Bureau, Consumer Credit Counselling Service or the National Debt Helpline; these organisations are there to help not to make money from those of us in debt.

IVAs were introduced by the Government through the 1986 Insolvency Act and were originally designed for businesses becoming insolvent. However individuals with serious debt can take advantage of IVAs. An IVA is a legally binding agreement and must be conducted through an Insolvency Practitioner. The Insolvency Practitioner will propose the IVA to the person's creditors and if it is accepted will supervise it over the period of the agreement. This is the key area to consider when taking out an IVA; there are fees to be paid. The Insolvency Practitioner will probably charge a fee to set up the IVA and then usually an annual fee to supervise the IVA.

Also you must be aware that not all debts can be included within an IVA. Debts such as secured loans or mortgages cannot be included, nor can the like of child maintenance arrears, council rent or rates arrears.

In general consider this option very carefully, seek advice, check the fees, be aware of the debts that can be included and budget carefully.