Debt Glossary - Individual Voluntary Arrangement

Individual Voluntary Arrangements were introduced in the UK as an alternative to bankruptcy. They provide a framework for working with creditors to reach a mutually beneficial solution to an individuals debt problems without the need for bankruptcy.

Under the terms of an IVA a persons debts are consolidated to a single monthly repayment to be paid for a fixed period of time. At the end of this period any remaining debt is written off. An IVA can only be set up via a Licensed Insolvency Practitioner.

IVA's in detail
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