Request Call

Speak to a specialist adviser today
for a no-obligation chat.
First Name
Last Name
Phone Number
Are You Curently Bankrupt

Latest Headlines

Need quick advice?

Ask an expert now and get an answer within the hour. Easy and FREE

Searching for information?

Visit our FREE archives and find the answer to thousands of questions.

Friday, 05 May 2006 00:09

Individual Voluntary Arrangement

Written by  Jon
Rate this item
(0 votes)

In the United Kingdom, Individual Voluntary Arangements (IVAs) are a formal alternative for individuals wishing to avoid petitioning for their own bankruptcy.

An Individual Voluntary Arrangement allows a debtor to repay their what they owe for as little as 25 per cent of the original balances in a binding plan in which the creditors eliminate interest.

The IVA was established by the Insolvency Act 1986 and constitutes a formal repayment proposal presented to a debtors unsecured creditors via a Insolvency Practitioner. The proposal is  presented to the debtors unsecured creditors versus the debtor opting to petition for bankruptcy.

Creditors (normally) take a commercial decision at a creditors' meeting called to consider the IVA proposal and vote on a poundage basis. To be approved it requires a majority of 75% of those voting - where connected parties (such as family) vote, then of those voting in favour, >50% must be unconnected.

In the UK, an increasing number of consumer debtors with overwhelming levels of debt are turning to specialist debt advice organisations that offer protection from bankruptcy via the use of an Individual Voluntary Arrangement. Many debtors are also opting to move away from a traditional Debt Management Plan as a way of achieving resolution from debt problems as they do not offer a binding agreement upon thier creditors.

It is normally advantageous to set up an Individual Voluntary Arrangement before becoming bankrupt but you can propose one afterwards; if an Arrangement is approved post-bankruptcy then the debtor can apply to the Court for an annullment of the bankruptcy order.

If an IVA is proposed after bankruptcy, it is possible to nominate the Official Receiver to be the supervisor of the arrangement.

To setup an IVA you can contact Myvesta.

Comments (0)Add Comment

Write comment
You must be logged in to post a comment. Please register if you do not have an account yet.


Insolvency calculator

Find out the best debt solution for you with our simple calculator:

Total Debt:


No of creditors:


Monthly income:


Monthly expenses:


Own home?

Yes No

Recent Activity

dawnlougib, Jon replied to the topic Re: HMRC in the forums.
38 days ago
dawnlougib created a new topic HMRC in the forums.
39 days ago
Jon, yknivag replied to the topic Re: Bankruptcy Questions in the forums.
55 days ago

Our Services

If you have a serious debt problem, bankruptcy can free you from your debts within 12 months. As a solution for dealing with serious debt, bankruptcy is a last resort. Other debt solutions need to be explored first, to help determine if bankruptcy is the right debt solution for you.


Your financial affairs are put into the hands of an Official Receiver or Trustee, who will control all your assets - and if you own a property, this will also be included. These will be sold and the money used to pay as much as possible to your creditors.


There are consequences to bankruptcy which will affect your finances and work life. You may struggle to borrow money, for example, and will not be able to apply for certain jobs.


For some, bankruptcy is the right option and will put an end to pressure from creditors. Our team of experts are on hand to advise on the best solution to your debt problems - call now on 0800 002 9951.


No messages to display

Latest Posts

More Topics »

Browse Categories