What is an IVA?
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement is a legally enforceable deal with your creditors to pay all or a percentage of your debts over a period of time. You can agree to make regular monthly payments or a lump sum, or a combination of both. Third parties such as your family can contribute funds for the deal. The money goes to a licensed insolvency practitioner, who will divide it between your creditors.
You don’t have to include all of your debts in the IVA, which has to be approved by 75% in value of the creditors who vote on it. Once it has been approved, all creditors you do include must accept the terms, even if they voted against it. There are no rules about how large a percentage of your debts have to be paid, nor how long the IVA should last. Basically, an IVA is an extremely flexible way of dealing with debts that you cannot pay immediately and can be adapted to the circumstances for each individual.