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Getting credit will be a challenge when you’re in an IVA, as it will show on your credit report. Your arrangement will also be entered onto a public register during the IVA term. While assets like your home are usually not included in arrangements, you may be asked to remortgage depending on the amount of equity you have.

In order to qualify for an IVA, you need to be a resident of England, Wales or Northern Ireland. You will also need to have a minimum debt level of £6,000 and owe money to at least two companies.

(This is set by Creditfix, other IVA providers may differ.)

Yes, an IVA will affect your credit rating as it will show on your credit file/report for six years after it has been approved. However, it’s important to note that this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.

While you won’t be able to pay extra and end your IVA early, it is possible to pay it off with a lump sum. This has to come from a third party and must be offered to the companies listed in your arrangement. They have to agree for it to be paid in exchange for the IVA to be closed.

The amount needed will depend on your circumstances, how much you have and the amount left to be paid into your IVA.

The IVA allows the debts to be written off for you, not for your partner, so they will remain responsible for any joint debts you have. If they are a guarantor, they will become fully liable for the account in question.

Your insolvency practitioner will also need to generate your income and expenditure based on your full household to show that you are paying a fair share of expenses. Your partner will not have to pay anything to your IVA (unless is it’s a joint one) and it is unlikely to affect their credit score.