Individual Voluntary Arrangement (IVA)

An IVA can enable an individual in financial difficulty to avoid personal bankruptcy. An IVA is particularly useful as it allows a mechanism to freeze and potentially reduce liabilities. To be successfully implemented an IVA has to be approved by 75% of unsecured creditors by value. A high percentage of IVA's are approved as they will normally provide a more attractive return to creditors than bankruptcy.

An IVA is often preferred to Bankruptcy as it is perceived as avoiding the stigma and some of the disabilities associated with Bankruptcy.  For example, an un-discharged bankrupt is prohibited from being a director and incurring credit without disclosing the Bankruptcy.

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