Personal Debt
Individual Voluntary Arrangement ("IVA")

Individual Voluntary Arrangement ("IVA")

An IVA is a formal insolvency process used as an alternative to Bankruptcy.

It allows an individual to put forward a proposal to pay all or part of their debts, which must provide a better outcome than the alternative, usually Bankruptcy.

An IVA is usually funded by surplus income, but can also be funded by the sale of assets or by the introduction of funds by a third party, such as a family member or a friend.

MostĀ IVA's last for five years but they can be for a shorter period to allow for the sale of certain assets or the introduction of funds from a third party.

Advantages of an IVA:

  • Avoids any perceived stigma attached to the bankruptcy process.
  • Allows you to retain control over your assets.
  • Certain assets may be excluded from an IVA if your creditors are in agreement.
  • Restrictions apply to running a business and some professions prevent an undischarged bankrupt from working in them.
  • The return to your creditors is higher than the alternatives.

To discuss an IVA and the alternatives please book a free, confidential, no obligation meeting by calling one of our experts at Currie Young on 01782 394500

01782 394500