IVA Agreement

An IVA (Individual Voluntary Arrangement) is a formal agreement between a person and their creditors to pay back a portion of their debts over a fixed period, typically five years. It is set up with the help of a licensed insolvency practitioner and is designed to make debt repayment more manageable. Once approved, the debtor makes affordable monthly payments, and the remaining debt is usually written off at the end of the term. An IVA helps avoid bankruptcy, maintains the individual's credit rating better than bankruptcy would, and provides a clear plan to resolve debt issues responsibly.