An Individual Voluntary Arrangement (IVA) is where there has been a formal agreement comprised between you and your creditors (the people money is owed to). The IVA proposal will set out how the debtor will repay the creditors, over a maximum five year period.
One of the main reasons as to why IVA's are so popular with both the creditors and debtors is due to the fact that the fees are much less than the fees incurred for court costs and Official Receiver fees required in bankruptcy action.
The provisions which relate to the effective and legally binding system of individual voluntary arrangements are set out in the Insolvency Act 1986. The procedure allows you to obtain protection of an interim order if you wish to formulate a proposal forward to creditors under an IVA. The interim order will buy you time so that our recommended Insolvency Practitioner can help you formulate a realistic proposal and put it to all your creditors for their approval.