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IVA (Individual Voluntary Arrangement)

An IVA (Individual Voluntary Arrangement) is designed to allow a debtor avoid personal bankruptcy and come to a formal arrangement to pay his creditors an agreed percentage of their debt over a set period of time.

Generally a meeting of all the creditors is held where a repayment programme is set which is legally binding. The monthly repayments are calculated by how much you can pay upfront as a lump sum and by analysing your income and expenditure to determine an affordable monthly payment figure. An insolvency practioner is appointed to mediate between yourself and your creditors.

If the monthly repayments are not met then the legally binding agreement is broken and your creditors can then force you into bankruptcy. An IVA can only be achieved if creditors holding owed 75% of the debt agree to the deal.

Advantages – An IVA is particularly attractive especially for those people where their career demands bankruptcy avoidance. It avoids the high fees associated with bankruptcy give the debtor a larger say in how the assets are dealt with.

Disadvantages – Your credit rating and profile will be affected.

How can Mayfair Debt help?

At Mayfair Debt with have a panel of insolvency prationers who can not only give your best advice but also help you into an IVA if this is the best solution for you.