Individual Voluntary Arrangement (IVA)
What is an IVA?
This is a formal agreement between you and your creditors that is administered by an independent licensed Insolvency Practitioner (IP).
It is usual that you agree to pay part of your household income into the IVA for a set period (usually 5 years) which the IP uses to pay his fee and your creditors. At the end of the set period, provided you have adhered to the agreed terms, you are then released from any debt not paid. If you own any assets, such as a house, whilst this can be excluded creditors usually ask that you release part of any value in the asset to increase what they get.
An IVA is a very serious commitment and may not be right for some people and so you must seek advice before taking this route. Please contact us to discuss this and see the R3 (the trade body of Insolvency Practitioners) web site at www.r3.org.uk for information about IVA's.
Additionally, you can download the R3 publication "Is a Voluntary Arrangement right for me?" here. (PDF - 220Kb)