IVA Proposal

An IVA Proposal, or Individual Voluntary Arrangement, is a formal agreement in the UK that helps individuals manage their debts. It allows a person to propose a plan to repay a portion of their debts over a set period, usually five years, based on what they can afford. The proposal is submitted to creditors for approval. Once accepted, it protects the individual from further legal action by creditors. At the end of the term, any remaining unpaid debts are typically written off, providing a structured way to regain financial stability without declaring bankruptcy.