Individual Voluntary Arrangement (IVA)
If you’re considering an IVA we provide expert advice on your options. An individual or sole trader can propose an IVA, which is a scheme that allows creditors repayment of all or part of their debts over a period of time as a means of avoiding bankruptcy.
Creditors have an opportunity to review an individual’s proposals and vote either against or for the proposals (with or without modifications) at a meeting of the individual’s creditors. A majority of over 75% in value of those creditors voting at the meeting must support the IVA for it to be binding on all creditors.
The advantages of an IVA are:
- Creditors will receive a more favourable return with an IVA than in a bankruptcy scenario
- Individuals will avoid the stigma, restrictions and consequences of bankruptcy with an IVA, as well as maintaining control of their estate
- Interest on debts will cease to be applied on approval of an IVA
- In certain circumstances, creditors may write off a proportion of their debt
Once complete, it will leave the individual debt free
We can advise individuals or sole trader, whether an IVA should be considered in the circumstances; assist in producing a viable proposal to put before creditors; facilitate negotiations and, if accepted, act as Supervisor of the IVA to ensure that it is carried out as envisaged.
If you require any further advice, information or assistance, please contact us.