IVA (Individual Voluntary Arrangement)

An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and their creditors to manage and repay debts. It allows individuals to pay back a portion of what they owe over a set period, usually five to six years, while protecting them from bankruptcy. During this time, creditors cannot take further action against the individual. IVAs are legally binding and must be set up by a licensed insolvency practitioner, offering a structured way for people to regain control of their finances and avoid more severe consequences like bankruptcy.