Individual Voluntary Arrangements

An Individual Voluntary Arrangement - known more commonly as an IVA can be a very effective way of avoiding bankruptcy and retaining your assets.

The process can be rather expensive in the short term but for many people the benefits in the long term make this a very worthwhile solution.

Advice on Individual Voluntary Arrangements (IVA’s)

An Individual Voluntary Arrangement, otherwise known as an IVA, can be a sensible alternative to bankruptcy for many individuals.

IVAs Explained

An IVA is a formal agreement between the person who owes the money (the debtor) and the people to whom the money is owed (Creditors). An IVA proposal sets out how the debtor is going to repay the creditors. A proposal can include a lump sum payment such as monies realised from a remortgage or sale of a property. An IVA is usually entered into for a period of three to five years and is therefore a long term commitment which shouldn’t be entered into lightly.

IVA’s begin with a formal proposal to your creditors to pay part or all of your debts. IVA’s have to be set up by an Insolvency Practitioner (IP), although under the news rules introduced by the Enterprise Act, The Official Receiver is able to administer a Fast Track Voluntary Arrangement (FTVA, see www.Insolvency.gov.uk ). However, this is only suitable in certain cases.

Any agreement reached with your creditors will be binding on them.