IVA - Individual Voluntary Arrangement

An Individual Voluntary Arrangement or 'IVA' is a legal substitute to bankruptcy introduced as part of the Insolvency Act 1986, which is a government law. Originally, IVAs were introduced as a solution to business insolvency but increasing levels of consumer debt has led many non-professionals to consider this option as an alternative to bankruptcy.

An IVA is a legal contract between you (the Debtor) and the companies that you owe money to (the Creditor), which enables you to reach a compromise with your creditors rather than resorting to Bankruptcy. Because the agreement is formal, it must be set up by the licensed professional, which is the Insolvency practitioner.

To read a full explanation as to what an IVA is click here