An Individual Voluntary Arrangement (IVA) is an alternative to and is particularly useful for small businesses such as sole traders. It is a legal deal between the individual and his creditors where an arrangement is made to repay some or all of his debts.
Typically an IVA lasts between one and five years, during which time, interest on debts is frozen.
75%, by value, of creditors must agree to the proposal which, if accepted, will bind all creditors.
Once the IVA proposal is accepted by creditors the Insolvency Practitioner acts as supervisor of the Arrangement and provides annual reports to creditors on the progress of the Arrangement.
Our publications section has further information about IVA's.
