The IVA Council

The Insolvency Service would like to make it clear that we are in no way associated with an organisation called the IVA Council.

IVAs are a flexible and effective means of dealing with debt. For debtors they provide protection from creditors, debt forgiveness, flexibility in terms of what assets are included, and none of the restrictions, which apply in bankruptcy. For creditors they provide a better return than could be obtained in bankruptcy.

IVAs allow debtors to repay their creditors that which they can reasonably afford and resolve their financial problems, and are supervised by licensed and regulated insolvency professionals.

The principal statutory alternative to an IVA is bankruptcy. Bankruptcy should always be the last resort as the debtor will lose control of their assets and will be subject to bankruptcy restrictions, potentially up to 15 years.

Consequently The Insolvency Service does not condone any implication that people in IVAs should stop paying and enter bankruptcy. If you have had any communication from the IVA Council or other third parties suggesting that you stop making payments under your IVA you should discuss this with the supervisor of the IVA and seek advice from professional, qualified advisers before taking any action.

If you have recently received a letter from ‘The IVA Council’, then make sure you read this.




Recent press coverage of The IVA Council (IVAC) has exposed its false claims made in letters sent to people already in IVAs which attempt to link it to government and The Insolvency Service.

The letter’s recipient is warned that they might be a victim of mis-selling by their Insolvency Practitioner resulting in a possible refund of fees and contributions. A “government licensed debt adjuster” is offered in support of this claim.


However, The Insolvency Service has confirmed that there is no relationship between the two organisations and that its lawyers are currently investigating the situation.

Any person in an IVA who has received a letter from IVAC needs to be aware of the following:

- IVAC has no ‘Consumer Credit Licence’ number evident on its website. You need this to be able to give debt advice, according to the requirements set out by the Office of Fair Trading
- IVAC offers no ‘Data Protection’ registration details which is necessary for a business that will be recording data.
- IVAC has no ‘Limited Company’ (Ltd) details, registration number or company address which is a mandatory requirement on all emails and letters from any Ltd company
- IVAC has used the logo of IP trade body R3, which it does not have permission to do.
- Credit Today published that ‘numerous attempts’ to contact IVAC had been unsuccessful. (25 October 2007)