An Individual Voluntary Arrangement (IVA) is a legal contract between yourself and your creditors. The advantage is that it is a legally binding arrangement which will be supervised by a Licensed Insolvency Practitioner. An IVA is intended to lead to a compromise between you and your debtors and in turn can help you to avoid the consequences related to bankruptcy.

An IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise between you and your debtors will lead to a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt.

You would usually make one single manageable monthly payment, based on your budget, for 3-5 years. After that the remaining debt may be wiped clean, leaving you completely debt-free. This means that an IVA can write off up to 75% of your debts.

Under the terms of the agreement you undertake to contribute as much as possible within your budget. So in reality, an IVA presents an opportunity for you to pay whatever as you can in a manageable way - a way you can afford.