The British Bankruptcy

An Individual Voluntary Arrangement (IVA) is a legally binding contract between a debtor and their creditors. It is supervised by a licensed Insolvency Practitioner. The purpose for an IVA is to provide individuals who cannot repay their debts the chance to avoid the consequences of bankruptcy. This is done by such debtors reaching a compromise with their creditors to pay off a reduced sum as smoothly as possible. Typically anybody entering into an IVA would have to make a manageable monthly payment to their creditors. This normally lasts for 5 years.