Choosing an IVA is something you should do after serious thought; not on a whim. By applying for an IVA, you are committing to a five-year term of monthly payments in order to keep your creditors happy and avoid bankruptcy. It won't be easy, and you must keep to the payment schedule you've agreed to. Before you decide to go ahead, read our hints and tips.

• Find an insolvency specialist – in order to apply for an IVA, you must appoint an insolvency specialist. They will arrange a meeting with your creditors and help you to come to an agreement with each one about how much you need to pay back each month. They will also administer the practicalities of the IVA, so you will make a single monthly payment to them and they will divide it up between your creditors. An IVA specialist will charge an administration fee, and you should check what this fee is, when it applies and what you get for it before you decide to go ahead.

• Gather your paperwork – it's vital that you have all the paperwork relating to the money you owe. An IVA only works if all your creditors agree to it, so you must be able to get in touch with every creditor you have so that they can have the chance to agree to this way of reclaiming their money. Don't throw away letters or demands that come in from your creditors. Keep everything in a safe place so that you can take it to your insolvency adviser.

• Work out what you can afford – an IVA is a legal commitment to paying your debts. You need to take a close look at your finances so that you can work out exactly how much you can afford to pay each month. Look at areas where you could make cut-backs in order to save money, or where you can earn more money – can you work overtime, for example, or rent out a room in your home for extra income? Remember that you have to be able to make this monthly payment for five years, so you must be sure you can afford it.

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.