Personal Insolvency – Individual Voluntary Arrangements
An alternative to Bankruptcy is an Individual Voluntary Arrangement (IVA) which is a legally binding agreement between a debtor and his/her creditors whereby the debtor repays all or part of their debt over a fixed period of time.
A debtor may make either a one off or regular payments for the benefit of their creditors. An IVA based upon regular contributions may last for up to five years.
If a debtor runs a business they can continue to trade while in an IVA.
Failure to comply with the terms of an IVA may result in a debtor being made bankrupt.
Further information on the VA procedure is included in the Voluntary Arrangements section of this brochure/website.