IVA

IVA stands for Individual Voluntary Arrangement. It is a formal agreement in the UK that allows individuals struggling with debt to repay their creditors a portion of what they owe over a set period, usually five years. This arrangement helps people manage their finances and avoid bankruptcy. During this time, creditors cannot take legal action to recover their debts. An IVA is overseen by a licensed insolvency practitioner, ensuring that the debtor meets their obligations while providing some relief from overwhelming financial pressure. It offers a structured solution for regaining control over one's financial situation.