Individual Voluntary Arrangement

An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and their creditors to pay back a part of their debts over a set period, typically five years. It is a legal process designed to help those struggling with overwhelming debt to avoid bankruptcy. Under an IVA, monthly payments are made based on what the person can afford, and at the end of the term, any remaining unpaid debt is usually written off. An IVA must be arranged through a licensed insolvency practitioner and requires approval from the creditors involved.