Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement, or IVA, offers a formal solution to your debt problems.

When an individual is insolvent but has the means or desire to maximise the return to creditors it may be appropriate for them to seek the agreement of creditors to an Individual Voluntary Arrangement, as an alternative to Bankruptcy

This is a legally binding agreement that enables repayment of the individual’s liabilities, in full or in part.  The Proposal for an Individual Voluntary Arrangement can take any form, it is usually by way of contributions from future income but can include a sale of assets, third party funds or any combination.

Creditors consider the Proposal for an Individual Voluntary Arrangement at a decision procedure.  In order for it to be approved, 75% of voting creditors need to approve it.  If the majority is reached, those voting against it would be bound by the terms of the Proposal.

As long as the individual adheres to the terms of the Proposal, the Individual Voluntary Arrangement will be concluded successfully, and the remaining debts will be written off.  An individual can retain control of his assets during this process