Posted by admin on May 1, 2010
An Individual Voluntary Arrangement or (IVA) is a debt solution made available in the United Kingdom – it is a alternative for people not wanting to go bankrupt. IVAs are governed by the Insolvency Act of 1986 and are made possible through the help of an Insolvency Practitioner.
Originally introduced in Part VIII of the Insolvency Act, IVAs have become a popular form of repayment for residents of the UK with a serious debt problem.
Most of the time, an IVA will only be used for paying off the unsecured debts but this is not always the case. Sometimes they can be used to cover secured debts as well. It depends on the agreement.
An IVA is a formal contractual agreement but it is quite flexible in that sense too. The amount that you pay each month into the IVA will greatly depend on how much money you can afford each month.