s0luti0n's Blog

An IVA (individual voluntary arrangement is a debt solution for consumers who have unmanageable debts and who want to avoid bankruptcy. An IVA is regulated by the Insolvency Act and can only be set up by a licensed insolvency practitioner.An IVA is available to borrowers who can not repay their unsecured debts within a reasonable time frame, usually 8 to 10 years. These borrowers will offer their creditors five years of repayments at a level they can afford, with a contribution from any assets, such as equity in their property. Creditors are presented with a detailed proposal and then vote on whether or not to accept the terms offered. If over 75% of creditors vote to accept, the arrangement becomes binding on all involved.For creditors to agree an IVA, they must believe the solution will ...