Individual Voluntary Arrangement
Individual voluntary Arrangements are used for sole traders and partnerships that business and trade debts getting out of control. An individual voluntary arrangement (IVA) is an alternative to bankruptcy.
It is a formal arrangement to pay an agreed amount off your debts over a shorter period, such as five years, or through raising a lump sum. The rest of the balance you owe on those debts which are included in the IVA is written off. Only an insolvency practitioner is able to set up an IVA. A fee is charged for preparing and running your IVA. The arrangement has to be agreed by the majority of your creditors (75% by value of those who vote)
Voluntary Arrangements are a formal process that can only be managed by a Licensed Insolvency Practitioner. In 2017, around 50,000 people had IVA’s approved in the UK; around 1,000 IVA’s per week.