As you are probably aware, an Individual Voluntary Arrangement (IVA) is a formal arrangement, based on government legislation, between a debtor and their creditors (minimum of 3), to make a single, often reduced payment each month for a period of 60 months (five years) to clear off all unsecured credit.
The amount that the debtor contributes to the monthly payment is based upon their monthly disposable income (income less expenditure, not taking into account any unsecured credit repayments). As long as this amount is agreeable to the creditors, an IVA can be proposed.

At the end of the five year period, the remainder of the unsecured debt is written off.

The minimum required debt level to enter into an IVA is usually £15,000, however, amounts above £20,000 are advisable. The applicant must also have a disposable income of £200+ per month (£250+ is recommended).

An IVA is a fixed arrangement, which cannot be changed by the debtor or the creditor, unless there is a significant change in the personal or financial situation of the individual in the IVA.

In order for an IVA to be accepted, the creditors who hold 75% of the value of the overall debt must agree to the IVA. The remaining 25% are then bound by the arrangement.