Encyclopedia — A–Z of IVA and Debt Terms
IVA language is full of jargon. This encyclopedia explains, in plain English, the Individual Voluntary Arrangement and wider debt terms you'll come across when looking at an IVA, a Debt Management Plan, bankruptcy, or any other formal debt solution in England, Wales or Northern Ireland.
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A
Annulment
Ending an IVA or bankruptcy, typically when debts are paid in full or a proposal is successfully implemented.
B
Bankruptcy
A formal insolvency procedure in England, Wales and Northern Ireland where a person's assets are used to pay creditors. Lasts typically 12 months.
C
Chairman's Report
The document produced by the Nominee after the Meeting of Creditors, summarising the vote and outcome.
Composition
A one-off lump-sum IVA proposal that settles debts without ongoing monthly payments.
Creditor
A person or company you owe money to.
Creditors' Meeting / Meeting of Creditors
The formal vote where creditors decide whether to accept your IVA proposal. Requires 75% by value of voting creditors to approve.
D
Debt Management Plan (DMP)
An informal arrangement to repay debts at a reduced monthly rate. Not legally binding; interest may still apply.
Debt Relief Order (DRO)
A low-cost alternative to bankruptcy for people with debts under a certain threshold, few assets, and low surplus income.
Disposable Income
What's left from your income after essential living costs. Used to work out what you can afford to pay into an IVA.
E
Equity
The value in an asset (usually your home) after subtracting what you still owe on it.
F
Full and Final IVA
An IVA settled with a single lump-sum payment instead of monthly contributions over five years.
H
HMRC
His Majesty's Revenue and Customs. HMRC debts (tax, VAT, self-assessment) can usually be included in an IVA.
I
Individual Voluntary Arrangement (IVA)
A legally binding agreement between you and your creditors in England, Wales or Northern Ireland to repay part of what you owe over a set period, usually five years.
See also: What is an IVA?
Insolvency Practitioner (IP)
A licensed professional authorised to act as Nominee and Supervisor of an IVA.
Insolvency Register
The public register of insolvencies in England and Wales, maintained by the Insolvency Service. Your IVA will appear here during its term.
IP Protocol / IVA Protocol
A standard set of terms agreed between IPs and major creditors to speed up straightforward IVAs.
M
Meeting of Creditors
See Creditors' Meeting.
Modification
A change a creditor proposes to the terms of your IVA at the Creditors' Meeting. You can accept or reject modifications before the vote is final.
MoneyHelper
The UK government-backed free and impartial money guidance service.
N
Nominee
The Insolvency Practitioner who prepares your IVA proposal and chairs the Creditors' Meeting. Once the IVA is approved, they become your Supervisor.
P
Payment Break
A pause in IVA payments allowed in certain circumstances (e.g. illness, redundancy).
Priority Debt
Debts with serious consequences if unpaid (rent, mortgage, council tax, court fines). Usually handled outside an IVA.
Protocol IVA
See IP Protocol.
R
Regulated Partner
A firm authorised and regulated (e.g. by the FCA or IPA) to provide debt advice or act as Insolvency Practitioners. IVA Helper introduces users to regulated partners.
S
Secured Debt
Debt tied to an asset (mortgage, car finance). Not included in an IVA.
See also: Debts included
Statement of Affairs
A detailed summary of your income, spending, debts, and assets. Used by the Nominee to build your IVA proposal.
Supervisor
The Insolvency Practitioner who administers your IVA once it's approved. Usually the same person who acted as Nominee.
T
Trust Deed
The Scottish equivalent of an IVA. Only available to Scottish residents.
U
Unsecured Debt
Debt not tied to an asset (credit cards, overdrafts, personal loans). The type of debt usually included in an IVA.
See also: Debts included
V
Variation
A formal change to an approved IVA, agreed by creditors (e.g. to extend its length or adjust payments).
W
Write-off
The legal cancellation of remaining included debts at the end of a completed IVA.
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