Individual
voluntary
arrangement
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How does an IVA work?
If you think an IVA is the route for you, and wish to propose an IVA to your creditors you will need the help of an Insolvency Practitioner (sometimes referred to as an IP) who is licensed to carry out negotiations with your creditors regarding the repayment of your debts.
Once you have appointed an IP, you will work out with him following a review of your financial situation, how much you can offer your creditors.
He/she will then draw up a formal written proposal for your creditors, detailing your debts and how much you can afford to pay and over what time period.
This will be circulated to your creditors, who may or may not request modifications, though none can be made without your agreement.
A creditors meeting will be held to discuss your proposal. As long as 75% accept it, the proposal becomes legally binding and the court and all creditors are informed of the result of the meeting.
You make your agreed monthly payments into the IVA for the agreed term. Once these have been fulfilled you will be debt free and any remaining debts written off.
