IVAs (Individual Voluntary Arrangements)

An Individual Voluntary Arrangement (IVA) is a formal agreement between a person and their creditors to pay back a portion of their debts over a set period, usually five to six years. It is an alternative to bankruptcy. During this time, the individual makes regular payments based on what they can afford, and creditors agree to freeze interest and stop any further action. At the end of the IVA, any remaining unsecured debt is typically written off. IVAs are legally binding and must be set up through a licensed insolvency practitioner.