An IVA is a legally binding agreement with your creditors to accept a sum of money as a way of settlement towards the debts which are owed to them. It is often an attractive alternative to Bankruptcy for both creditors and the individual.

It can help alleviate pressure from creditors and provide that much needed breathing space. It can also help preserve your credit rating.

The individual will prepare an IVA proposal which will be presented to creditors. The proposal will detail the individual’s financial position and their proposals for the settlement of their liabilities. The IVA is considered by creditors and once approved is legally binding.

Proposals typically consist of monthly payments from future profits over a period of 5 years, however there is scope for flexibility dependent on the individual’s circumstances.

Any contributions are based upon what the individual can afford to pay.

If approved an IVA prevents creditors from taking any formal legal action in respect of pre IVA liabilities.