Individual voluntary arrangement (IVA)
Warning, if you consider entering into an Individual Voluntary Arrangement we suggest that you seek advice.
What is an IVA?
A formal legally-binding agreement between a debtor and her/his creditors, usually non-priority creditors, to repay debts in part or in full over a fixed period of time. It is authorised by the court and supervised by an independent person called an insolvency practitioner.
How flexible is it?
It can be adapted to the debtor's circumstances but must follow a statutory procedure. It can be entered into by a debtor either before, during or after bankruptcy, and should be explored as an alternative to bankruptcy.
When should you consider an IVA as an option?
When at least £100 to £200 a month is available for payment to creditors, whether or not a person has assets. An IVA lasts for a fixed period (usually not more than five years) and so should also be considered where an informal payment arrangement is likely to last longer. There is no maximum or minimum level of debt for an IVA but, in view of the costs involved, it is unlikely to be appropriate unless the number of debts total at least £15,000.
WARNING!!
Before contacting one of the numerous insolvency practitioner advertising in local papers or through call centres, come to our local bureau to seek advice or contact one of the other links on useful partner organisations.