Individual Voluntary Arrangement (IVA)
An individual voluntary arrangement (IVA) is a legal agreement between you and your creditors. The form of the IVA is very flexible and allows you to make payments to your creditors over a period of time and it is often the case that the amount repaid is considerably less than the whole debt. However, this depends on your circumstances.
You can propose an IVA even if you are already bankrupt or have a petition against you but, in that case the earlier you seek advice from us the better. There are a number of other possible solutions for people with serious debt problems and we will also discuss these with you.
An IVA proposal may be based on payment of an affordable monthly contribution for up to five years; payment of a lump sum by a third party or realisation of funds from a property.
We offer a free consultation with one of our insolvency practitioners and if an IVA is the right choice, we will assist you in preparing your proposal and ensure it is achievable. Plainly, creditors are more likely to accept the proposal is we can show them that they are likely to receive a higher return than if you became bankrupt.
Potential advantages of an IVA include:
- Certainty: knowing what needs to be done to solve your debt problems
- Protection: creditors no longer bothering you
- Future: the expectation of being debt free
- Trading: the possibility of continuing your business
- Flexibility: a solution that reflects your unique circumstances
