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Individual Voluntary Arrangements (IVA)

  1. Personal Insolvency
  2. Individual Voluntary Arrangements (IVA)

​So what is an IVA? An IVA is a legally binding commitment between you and your creditors for you to pay some or all of your debts off over a fixed period of time (typically up to 5 years) with legal protection preventing your creditors from continuing to chase you for the money you owe them.  A Licenced Insolvency Practitioner is instructed and a proposal is prepared and put to your creditors detailing your personal circumstances and how much you can afford to repay.  Your creditors then vote on whether to accept your proposal, whether to suggest changes or they can reject your proposal.  Acceptance is obtained if more than 75% by value of your creditors who vote, vote in favour. If your creditors accept your proposal and you keep to your side of the agreement, the balance of any unpaid debt is written off.  Interest on your debts is frozen once the arrangement has been approved and throughout the term of the arrangement.

An IVA can help you to keep your home, although you may need to release some of the equity during the arrangement.  It can also help you to preserve your employment if your job would be at risk if you were to go bankrupt.  An insolvency register (IVA register) records details of those in IVAs.  It is a big commitment and there are many pros and cons of an IVA to consider.  Contact us to find out about how we can help.

Do you need expert help?

Speak to one of our experienced staff members about whether an Individual Voluntary Arrangements is right for you. We are confident we can give you a great service at a competitive price.