Helpful tips about Individual Voluntary Arrangements

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The term Individual Voluntary Arrangement or more commonly referred to as an IVA is a contractual arrangement between the lender and the individual that entered into an agreement to obtain credit and is widely regarded as a preferable alternative to forced bankruptcy allowing the debtor to maintain his business assets or directorship within a company.

The IVA acts as a formal agreement usually set over a five year period, after which, the debt would be deemed as satisfied in full. It works by allowing the individual to make reduced payments on the total amount owed, in effect reducing the total borrowing by an agreed percentage of up to and in most cases 75% of the amount outstanding or total debt.

So how does an IVA actually work?

Due to the legal nature of this type of arrangement the process requires the input of a licensed Insolvency Practitioner who will set up the IVA acting as administrator during the term of the arrangement. Their role during the process...more information

What are the pitfalls of an IVA?

Should you find yourself in this position an Individual Voluntary Arrangement (IVA) seems to or at least’s sounds better than bankruptcy doesn’t it? An IVA may look like the best alternative but it’s not without its pitfalls... more information