Is an IVA a Scam? How to Avoid Bad IVA Firms

IVAs Are Legitimate, but Not Always Sold Well

An Individual Voluntary Arrangement is a formal, legal solution governed by insolvency law and set up by a licensed, regulated Insolvency Practitioner. So an IVA is not a scam. The problem is that, because IVAs generate fees, some marketing firms push them aggressively, including to people for whom a cheaper option, or free advice, would be far better.

Red Flags to Watch For

Be cautious of any firm that:

• pressures you to sign up quickly, or makes you feel you have no other option;
• promises to "write off" a fixed percentage of your debt before properly reviewing your finances;
• does not clearly explain the fees, the downsides, or the free alternatives;
• asks you to pay an upfront fee just to enquire or be "assessed";
• discourages you from contacting free debt charities;
• claims it can remove a correctly recorded IVA from your credit file early, it cannot.

How to Protect Yourself

A few simple checks go a long way:

• Speak to a free, impartial service first, so you have an independent view;
• Check that any Insolvency Practitioner is licensed, their regulator can confirm this;
• Make sure all fees and the alternatives are explained in writing before you commit;
• Never feel rushed, a good adviser will tell you when an IVA is not right for you.

Where to Get Honest Help

Free, impartial debt advice is always available and will never try to sell you a solution. The organisations below are a safe place to start, whatever you decide.