Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy. An IVA is a legally binding agreement between you and your creditors. They can work well if you have a good reason to avoid bankruptcy (for example, if you would lose your job or if your family home would be at risk) and if your creditors would get a better outcome through an IVA than they would if you become bankrupt.
The terms of your IVA proposal to creditors can be flexible and are primarily down to your circumstances. Your proposal could include the sale of assets, contributions from your future income, a third party contribution or a combination of these. An IVA is inherently flexible: it is based on what you can realistically afford to offer and what your creditors will accept as a reasonable offer.
The right choice for you?
An IVA allows you to stop escalating debts and begin again, debt-free.
An IVA may be worth considering if you have surplus disposable income, or if you wish to avoid bankruptcy in order, for example, to avoid losing your job.
If you are a sole trader, an IVA may enable you to continue trading during a period when there are cash flow problems or other unforeseen commercial issues. As with any insolvency procedure, there are advantages and disadvantages to an IVA, so it is vital to take specialist advice before deciding which option is best for you in your particular circumstances.
To find out about how IVAs work and to understand the full implications of choosing an IVA, call us today on 0114 285 9500.