IVA (Individual Voluntary Arrangement) is a formal arrangement and must be entered in to using an Insolvency Practitioner who will make a formal proposal to your creditors to pay part of your debts and accepting this as full and final settlement.

An agreement will be reached for you to pay one affordable monthly payment t settle the amount agreed between you and your creditors. The agreement reached by the insolvency practitioner between you and your creditors is legally for both parties.

If you are being persued for payment and threatened with legal action, the IP (Insolvency Practitioner) is able to apply to the court for an Interim Order. If it is necessary to obtain an Interim Order this stops the creditors from chasing you further for payment of the debts it also stops them from applying for a bankruptcy petition.

The IP presents your case to the court telling them of your circumstances and the proposal he has put together on your behalf and whether he considers a meeting of the creditors should be held.

If a decision is made to hold a meeting with the creditors they will be informed of the date and time of the meeting along with details of the proposal being put forward. It is necessary for creditors who are owed more than 75% of your total debt to vote in favour of the proposal.

The Insolvency Practitioners are experts in this field and put forward realistic proposals which they are confident will be accepted by the creditors.

Once the proposal has been approved it becomes a legally binding agreement, you will then begin to send the agreed monthly payments to the IP who will distribute the agreed amounts to each of the creditors.