An insolvency with an Individual Voluntary Arrangement (IVA) will affect your financial situation in many ways. Generally, IVAs work by refinancing or borrowing against your existing assets (usually your home) to create a lower monthly payment than what you would be able to pay under normal circumstances. This can help reduce the amount of time that it takes to repay the debts and may also give you more manageable payments over the long term.
Bear in mind that while an IVA can be a very beneficial solution, it is not without its risks. If you fail to meet your obligations under an IVA, your creditors may take legal action to recover their money. Additionally, if the economy weakens or your income decreases, this arrangement may not be enough to cover your monthly debt payments. In these cases, you could find yourself struggling to make ends meet.