What is an IVA?

IVA stands for Individual Voluntary Arrangement. It is a debt solution option available to people in the United Kingdom and residents that live overseas – including those residents of the United States, Canada, and Australia.

These types of debt solutions allow people to avoid going through the implications that come along with bankruptcy. An IVA is a legally binding agreement as well and is approved by the government so you can be rest assured there is a significant amount of legislation involving the process.

The Process

An IVA starts with the debtor and the Insolvency Practitioner (IP) sitting down to discuss the best path forward. A good IP will not immediately suggest you go with an IVA. Instead they will offer you a number of options and discuss what might work best for you.
In certain circumstances, your poor financial standing could limit the amount of solutions that are available to you so finding great IVA advice is crucial.

After the IP has approved the IVA proposal they will send it along to your creditors who will then meet to decide whether they should approve the proposal or not. If it is approved, then you can receive the IVA.