Individual Voluntary Arrangement (IVA)

Providing dedicated support

An individual can propose an Individual Voluntary Arrangement (IVA), which is a scheme to creditors for repayment of all or part of their debts over a period of time. An IVA is used 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 modification). A majority of over 75% in value of those creditors voting must support the individual voluntary arrangement for it to be binding on all creditors.

Why seek an individual voluntary arrangement?

The advantages of an IVA are:

  • Creditors will receive a more favourable return than in a bankruptcy scenario
  • Individuals will avoid the stigma, restrictions and consequences of bankruptcy as well as maintaining control of their estate
  • Interest on debts will cease to be applied on approval of an individual voluntary arrangement
  • In certain circumstances, creditors will write off a significant proportion of their debt
  • Once complete, an individual voluntary arrangement will leave the individual debt free

Bailey Ahmad Business Recovery can; assist in producing a viable proposal to put before creditors; facilitate negotiations and, if accepted, act as supervisor of the individual voluntary arrangement to ensure that it is carried out as envisaged.

How do I know I am insolvent?

Before we can consider the various solutions available for an individual, it is important to first understand what the term insolvent means.

An individual is insolvent when they have insufficient assets to cover their liabilities/debts or are unable to pay debts when they fall due.

Conversely, when there are sufficient assets to cover liabilities or to pay debts as and when they fall due,

I would recommend Bailey Ahmad Business Recovery to anyone. I got into tax difficulties for medical reasons and they stepped in and just sorted everything. No messing, clever, pleasant, punchy and effective. The real deal – use them!"

If you or your clients would like to know more about IVAs, please call us on 020 8662 6070 for confidential advice. Or fill out our contact form and a member of our team will respond within 24 hours.

All consultations are confidential, free of charge and without obligation

Paul Bailey and Tommaso Ahmad are licensed insolvency practitioners in the UK and are regulated by the Institute of Chartered Accountants in England & Wales. We are also members of R3 - The Association of Business Recovery Professionals.

Contact Us

+44 (0)20 8662 6070

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