Individual Voluntary Arrangement

An Individual Voluntary Arrangement, or IVA, allows a debtor to avoid bankruptcy by coming to an agreement with creditors to pay off a percentage of his or her debts over a period of 60 months. An IVA is an alternative to bankruptcy, enabling a person in debt to make a proposal to the people they owe money to. The proposal must be approved by a majority of the creditors, which then binds all parties and prevents any further action.

The application and set up process takes around 4-6 weeks from the point of application.     The majority of the work is done for you, but you will be required to provide evidence of things such as income, essential outgoings, etc., and documentation.

The amount payable to the creditors is worked out in a similar way to that of a debt management programme although, as it is a legally binding agreement the figures have to be far more precise.

An IVA is available to all individuals, Sole Traders and Partners who are experiencing creditor pressure and it is used particularly by those who own their own property and wish to avoid the possibility of losing it in the event they were made bankrupt.

Call today and have a chat with an advisor who will be able to explain in detail what option may best suit your situation.