Insolvency Services


Personal debt FAQs

Umbrella.UK Insolvency provides Individual Voluntary Arrangements (IVA) for those struggling with debt allowing you to take control and move forward.

Q. Will my IVA be approved?
A. An IVA has to be agreed by over 75% (by value) of your creditors who vote on your proposal. We follow the IVA protocol so there is a high certainty that any proposal put forward by us will be accepted by your creditors. Following the acceptance of the IVA we will manage all contact with your creditors.

Q. What are your fees?
A. As an IVA can only be prepared for you by a Qualified Licensed Insolvency Practitioner, there are inevitable professional fees for arranging and administrating this. At Umbrella there is no fee charged unless your IVA is accepted by your creditors. Any fees and IVA costs are deducted from your agreed payments and are not in addition to the amount you can afford to pay. i.e. if it is agreed that you will pay £200 per month for 60 months this is all you will pay, subject to a change in your circumstances.

The fees for an IVA are made up of a Nominee’s Fee which covers the fee for putting together the contract and presenting it to your creditors. This is usually a sum equivalent to your 1st 5 monthly payments subject to a minimum fee of £1,000.

If you are a sole trader then there will be more work to complete so the fee will be higher.

In addition there is also a Supervisor’s Fee, which covers the ongoing management of your IVA and liaising with your creditors, and is calculated at 15% of subsequent payments after the Nominee’s fee has been paid. Certain costs, such as insurance and postage, are also recharged to your IVA and are approximately £800 per case. All of these charges are disclosed to you and your creditors before you enter into an IVA.

We would only advise you to proceed if it is in our professional opinion the best option for you. No fees will be payable if we do not recommend an IVA.

Download PDF of Voluntary Arrangements – A Creditor’s Guide to Insolvency Practitioners Fees

Q. Will an IVA have an effect on my credit rating?
A. An IVA does affect your credit rating for 6 years after approval and it is normally a requirement that you do not apply for new credit while in an IVA.

Q. What happens if my circumstances change once my IVA has been approved?
A. If your circumstances change then your payments may go up or down depending on affordability. If you received an unexpected windfall of over £500 will have to go towards repaying your debts.

Q. What will happen to my home?
A. Homeowners may need to release equity from their property to pay creditors and a remortgage may attract higher interest rates. If no remortgage is possible then your IVA may be extended by 12 months.

Q. How much will I pay back each month to the creditors during in the IVA?
A. This is different in every case and is subject to your individual circumstances. A full review of your income and expenditure will be undertaken by Umbrella. If your IVA is approved then there will be restrictions on your expenditure.

Q. Are all my debts included?
A. An IVA covers your unsecured debts such as personal loans, credit cards and overdrafts. There are however a number of exceptions including fines, student loans, child maintenance payments and certain orders following divorce. Payments on your mortgage, secured loans or secured car finance will still need to be maintained where applicable – these debts cannot be included in an IVA but will be taken into account when considering what monthly payment are affordable. 

Q. Can an IVA help me avoid bankruptcy?
A.  A benefit of an IVA is that it can help you avoid bankruptcy however a failure to comply with the agreed terms of the IVA can lead to bankruptcy proceedings being initiated against you.

Q. Will anyone be able to find out I have an IVA?
A. An IVA is recorded in a public register (but is not required to be published in your local newspaper – unlike bankruptcy).

Q. What happens at the end of my IVA?
A. Once all terms of the IVA have been complied with, we will issue a final report to your creditors and issue you with a Certificate of Completion which you can then send to the credit reference agencies so they can update their records.

Q. Where can I find out more about dealing with my creditors?
A. You can find out more about dealing with your creditors in a guide produced by the Insolvency Service

To find out more about managing your money and getting free debt advice visit Moneyhelper. It was set-up by the Government to offer free and impartial money advice.

See or call them free on  0800 138 7777


If you think an IVA could help you please call Umbrella.UK Insolvency for a no-obligation review on 0800 611 8888, visit www.umbrella.UK or email us at or

Download PDF of R3 - Dealing with money worries - A guide to your options

Download PDF of The Insolvency Service ‘In Debt Dealing with your creditors’

Download PDF of Voluntary Arrangements – A Creditor’s Guide to Insolvency Practitioners Fees


*We don’t charge for an initial consultation, but it may lead to an insolvency solution where our pre-appointment costs are reimbursed as part of the fee structure that creditors approve.

Umbrella.UK is a trading name of Umbrella Accountants LLP. Registered Office: Bollin House, Bollin Link, Wilmslow, Cheshire, SK9 1DP: Company Number OC360021. Data Protection Number Z2517380. VAT Registration Number 107346824.

Thomas Fox LLB MIPA is an employee of Umbrella Accountants LLP and is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Professional Indemnity Insurance - In accordance with the disclosure requirements of the Provision of Services Regulations 2009, the firm’s professional indemnity insurer is Arch Insurance (UK) Limited, 5th Floor, Plantation Place South, 60 Great Tower Street, London, EC3R 5AZ.

The territorial coverage is worldwide excluding professional business carried out in the United States of America or Canada and excludes any action for a claim brought in any court in the USA or Canada.

See our complaints policy. See our privacy policy.

  • I would like to say a very big "Thank You" to your lady on the telephone this morning who helped me start getting my life sorted and debts managed. So thank you "Sarah" great help... thank you again.L Smart

  • Thank you so much for your help with my IVA. As an ex-company Director my life took a downward spiral when creditors from my liquidated company called upon my personal guarantees. I had been treading water for months, ran up credit card debts and borrowed from family. When a creditor instigated bankruptcy proceedings against me I thought I was going to lose my house. I contacted Umbrella.UK Insolvency who stopped all the phone calls and threatening letters. Umbrella Insolvency explained things in a way I could understand. They negotiated with creditors and my IVA went through, now I can sleep at night again and I kept my home. Thomas Fox was extremely knowledgeable and I truly thank him and his team.Paul G

  • Thank you very much for your assistance in a successful proposal. We are ever so grateful as this is a chance to transform our lives; or rather you have given us a second chance to have our lives in order. Thank you for your patience and perseverance throughout that you showed.NP

  • I engaged Tom to arrange an IVA for me after I ran into financial difficulties as a result of the closure of my company. He introduced me to Sarah and both of them as a team worked tirelessly through Lockdown to get the best outcome for me and my family. Both Sarah and Tom were patient, thorough and incredibly compassionate for our situation. They attained the best outcome for us and I couldn't speak more highly of them. Thank you to you both, Amazing work.DH

  • Before I came to Umbrella.UK Insolvency I was in a bad place mentally due to debt because I believed I would be in my current situation for a long time to come. Umbrella Insolvency walked me through my options and helped me pick the best one. I am genuinely amazed at what they managed to do for me and can now afford to live comfortably, and without the constant worry of debt looming over me.MT

  • First of all, I would like to say a BIG Thank You for all of your assistance over the past year. I would not be in the positive state of recovery without Umbrella Insolvency. Your care and assistance at the application stage last summer, along with the advice throughout the year, has been great. I would not hesitate to tell anyone in my negative situation where to turn to.Mr TM

  • I'd just like to thank both you and Tom for your help with the closure of my company. You have been highly efficient and very professional throughout. Thank you.Tony D

  • Efficient & proactively managed very quickly. Umbrella.UK Insolvency guided me as sole Director of my small limited company, and the shareholders, through every step of a Members Voluntary Liquidation in a very efficient manner. The steps required were clearly laid out and proactively managed by their licensed practitioner. From first meeting through to an interim distribution of funds to shareholders took only a few days in our case. Thereafter, Umbrella will be managing all of the downstream actions required to complete the process with HMRC and Companies House, through to the final discharge of the company.Alex O

  • I extend my appreciation of your professional efficiency in handling my company business and herewith say thank you.Maxine R

  • I would like to thank Sarah and her team for all the hard work they have put into helping me sort my finances out once and for all. Without this IVA I would still be struggling every month trying to make ends meet. I received nothing but an efficient polite service every time I spoke to a member of your team and I'm so very grateful. Thank you so much. Natasha R