Individual Voluntary Arrangements (IVA)

An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and their creditors to pay off debts over a set period, usually five years. It allows the person to make manageable monthly payments based on their financial situation. In return, creditors agree to freeze interest and halt legal actions. After completing the payments, any remaining debt is written off. IVAs are regulated and typically arranged through an insolvency practitioner. This option can help people avoid bankruptcy while providing a structured way to deal with overwhelming debts.