Indivudual voluntary arrangements (IVAs)

An IVA is a contract between you and your creditors in which you pay an agreed monthly sum for a set period, usually five years. Alternatively an IVA can be funded by the introduction of a lump sum, for example funds from a re-mortgage.

In simple terms, anyone who cannot pay their debts is deemed insolvent. Many people find that it is more preferable to follow an IVA route than bankruptcy. A voluntary arrangement shows that an individual has financial responsibility and does not exclude you from running a business or acting as a director.

You retain control of your assets and, if viable, any business will be able to continue. Depending on your financial circumstances creditors may agree to write off as much as 70% of your debt and all interest is frozen.

When your repayment period expires, you will not have to make any further payments to your creditors.

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