What Is An Individual Voluntary Arrangement (IVA)?
An IVA is a less formal procedure open to insolvent individuals (even those who are already subject to bankruptcy proceedings). The IVA procedure is extremely flexible and varies from case to case. An IVA is basically an agreement with your creditors to offer a better return than in bankruptcy and avoid the consequences of bankruptcy.
In an IVA, creditors should benefit more than under bankruptcy proceedings. The arrangement, if approved by the creditors at a meeting, is overseen by a supervising licensed insolvency practitioner. It is binding on those creditors who had notice of and were entitled to vote at the meeting.
An IVA cannot affect the rights of secured creditors or preferential creditors except with their agreement.
The IVA’s benefit is its flexibility and comparatively cheap administration costs for creditors, thereby increasing returns to creditors. IVAs also enable individuals to go about their daily business in a less restricted manner than under bankruptcy.
Informal Arrangements With Creditors
Sometimes it is possible to negotiate an informal arrangement with creditors and avoid any formal insolvency procedure. Contact our team for more information.
Debt Management Plans (DMP)
A DMP is an agreement with creditors to pay set monthly amounts, creditors will sometimes agree to freeze interest payment.