Individual Voluntary Arrangements - IVAs

Advantages

• No publicity (no public notices or advertisements)
• Avoids the stigma of bankruptcy
• Creditors usually receive a greater dividend than what they would expect in a bankruptcy
• More flexible than a bankruptcy in that you have more control over your assets and payments to creditors. The length of term of the arrangement can also be varied
• Permits an individual to hold certain offices such as director of a limited company

Disadvantages

• Failure to comply with the terms of the IVA may result in eventual bankruptcy
• There is no guarantee as to how the creditors’ will vote
• Creditors may wish to vary or modify the proposal
• In some circumstances the initial costs for the Nominee’s fees need to be paid in advance
• Further credit is usually prohibited within the term the arrangement

Below we have compiled a list of the most frequently asked questions together with the answers.

What is an Individual Voluntary Arrangement, IVA?

In the simplest terms it is a contract between the debtor and their creditors. The debtor puts forward a proposal to his / her creditors, which outlines their current financial position and some of the history behind it. ...