About IVAs

IVA is an abbreviation of Individual Voluntary Arrangement, a legally binding debt solution. It is a simple arrangement that requires you to pay an affordable amount each month to an IVA provider in lieu of payments to your creditors. The IVA provider will then distribute these payments pro-rata to your creditors. After a fixed period, usually five years, any remaining unsecured debt is written off by your creditors.

An IVA is supervised by a licensed insolvency practitioner. They will handle the case from start to finish, managing all of the correspondence between you, your creditors and the courts. The insolvency practitioner will submit an IVA proposal to your creditors for them to vote on. Providing 75% by value of your creditors accept the proposal, your IVA will proceed.

Once your IVA has begun, you have to make payments into the IVA as agreed in the proposal. Throughout the agreement the case is supervised by your insolvency practitioners who will ensure that you are not harassed by your creditors.

IVA solutions have proved greatly beneficial for a large number of people, who have been struggling with the burden of debts and are considering bankruptcy. The best aspect of the IVA is that before you get into the agreement, the insolvency practitioner will discuss in detail your present financial situation and suggest the best solution for your circumstances.

The only people that need to know that you are in an IVA are your creditors. Your licensed insolvency practitioner is required to give each of your creditors prior notice of the creditors’ meeting. You are under no obligation to inform your employer unless they are also a creditor and the IVA will not be published in local newspapers, unlike a bankruptcy.