Individual Voluntary Arrangement ("IVA")

An Individual Voluntary Arrangement (“IVA”) is a formal alternative for individuals wishing to avoid bankruptcy. Usually (but not necessarily) the IVA compromises only the claims of unsecured creditors, leaving the rights of secured creditors largely unchanged. An IVA is a contractual arrangement with creditors and can be as flexible as an individual's own circumstances; they can therefore be based on capital, income, third party payments or a combination of these.