Individual Voluntary Solutions (IVA)

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a scheme created and endorsed by the government. It is a very popular way for any individual who qualifies to repay their debt at an affordable amount per month but with a guarantee from creditors that debt will be repaid in less than 60 months (5 years) from the onset. With an IVA it’s possible to write off up to 70% of your debts.

Any amounts outstanding are written off. If you have agreed personal debt and can't afford to repay due to unforeseen circumstances and are unable to attain any further credit to clear your debt, this could be the best solution for you.

How an IVA Process Works

Once a decision has been made that an Individual Voluntary Arrangement (IVA) is the right solution for you, you will be asked questions regarding your current financial situation. Based on the information you have given, a repayment amount will be agreed with you. Once proposals have been drawn up you will need to check and sign these and return them.

An application may then be made to the court for an Interim Order. Once this is in place, no creditors will be able to take legal action against you. A creditor meeting will be arranged to which you should attend.

For an Individual Voluntary Arrangement (IVA) to be approved, creditors will be called upon to vote either for or against the arrangement. If only one creditor votes "for" the Individual Voluntary Arrangement, the Individual Voluntary Arrangement will be approved. However, if only one creditor votes against the Individual Voluntary Arrangement and they represent less than 25% of your total debt, the meeting will be suspended for a later date and other creditors who did not vote will be called upon for their vote.

If the creditor who voted against the Individual Voluntary Arrangement represents more than 25% of the total debt you owe the Individual Voluntary Arrangement will fail. This is because an Individual Voluntary Arrangement will only ever be approved if 75% in monetary value is voted for. If any of the creditors don't vote, it is assumed that they will be in favour of the Individual Voluntary Arrangement.

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Debt Solutions | Debt Management Plans | Individual Voluntary Arrangements

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