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Debt and Credit Advice

Individual Voluntary Arrangements – Option For Paying Off Your Debt

individual voluntary arrangement

What is an IVA?

An IVA or Individual Voluntary Arrangement is an agreement between you and the people / companies you owe money to.

It creates a payment plan so that you can begin to pay off your debts at a rate you can afford.

An IVA is only available in England and Wales. The equivalent of an IVA in Scotland is referred to as a Protected Trust Deed.

An IVA is a legally binding agreement. To be approved for an IVA, the people you owe money to have to be in agreement for you to enter into one or 75% of the value of the debt, however many people that involves, to make up the value.


Credit Reports Show IVAs

It is always best to be honest if you have an IVA when applying for any sort of credit, as an IVA will show up on your credit history.

However, at Compass Vehicle Services we look at **affordability** and **traceability** as our criteria, and not your credit score.  So you can be upfront and honest with us, as you know that we will lease to you if you are in an IVA or not.

We will also lease to customers who have CCJ’s and who have been bankrupt.

Please note we are not legal professionals, if you are looking into IVA then seek advice from a professional in that particular field.


Car Finance With an IVA

If you have an IVA or had an IVA within the last 6 years you may wonder if you can get car finance.

It will be difficult to get finance from a mainstream dealer, but at Compass Vehicle Services we only lease to customers with bad credit.

Many of our customers have been affected by  IVAs.


Applying for Car Finance with an IVA

Under the IVA a car usually comes under ‘essential credit’. This means a vehicle is required to get you to work;  without it you could not get to work and thus it is essential for you to earn money to pay off your debt.

If you are in an IVA you need to apply to us as normal,  however, at the point of enquiry it is best to mention you are in an IVA, so our advisers can give you further information.

Once you have been approved, quotations for vehicles are then provided, and these will need to be then passed by your IVA practitioner.

Your IVA Practitioner will have the final say on the amount you are able to spend on the lease vehicle per month.

Before you are able to enter into a contract with Compass Vehicle Services, you will need to provide written permission from your IVA practitioner showing they are happy for you to go ahead with the leasing contract.


Compass Vehicle Services Ltd offer:
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