An Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors. It is often appropriate for people who cannot make their monthly repayments in full but who do have some money to give to their creditors each month. The IVA may also be funded by a lump sum raised from the sale of an asset such as property or an insurance policy or contributions from friends or family. In other cases, funds may be generated by a combination of realisation of assets together with monthly contributions from income.
Unlike informal arrangements, IVAs can only be formulated, processed and supervised by a licensed insolvency practitioner. At Rooney Associates, we have considerable experience of putting together proposals for and supervising Arrangements.
Consequently, we can apply that experience in advising whether or not a proposed Arrangement is workable and, equally importantly, whether or not it is likely to meet with the approval of a sufficient number of creditors
One of the main advantages of an IVA is that it can often provide a basis for achieving a full settlement of all outstanding liabilities but by offering and paying only a percentage of the actual debts.
Of course, the amount offered has to be reasonable otherwise the proposal will not meet with the approval of the creditors in the first place. It is also very important that the proposal is intended to bind all the creditors of the debtor since it will be of no effect on creditors who have not been made aware of it and that can have the effect of defeating what would otherwise be a workable arrangement.
In practice, IVAs will only be suitable for people who can put forward realistic and meaningful proposals for payment over a period of time.
Unfortunately we are unable to offer assistance to individuals and would suggest that you seek advice from your local Citizens Advice Bureau.