Individual Voluntary Arrangements

An individual voluntary arrangement (IVA) is an alternative to bankruptcy.  It is an agreement between you and your creditors to alter the repayment of  or reschedule your debts.

It is a consensual process and therefore your proposed plan is put to creditors for them to consider and you will require 75% or more of the votes to be in favour of them to get it implemented.

The proposal will often mean that some of the debt is written off by creditors but they will expect to get more back by agreeing to your proposal than they would in bankruptcy.

Creditors may suggest that the proposal is amended before they are willing to accept it but this is only with your agreement.

Most debts can be paid off through an IVA but there are some exceptions such as maintenance and child support arrears that have been ordered by a court, student loans and court fines.