An IVA is a formal arrangement with all the unsecured creditors you owe money to.

The agreement made between you and your creditors could result in you not paying back the full amount, you could write off up to 100% of the debts you cannot afford to pay. The alternative to an IVA could be bankruptcy.

An IVA usually lasts for five years and over this period you would be expected to contribute a monthly payment into the IVA scheme fund. The level of this contribution is decided by YOU in conjunction with the Insolvency Practitioner appointed by you. This amount must be affordable by you and agreed by your creditors. These funds are then paid out to your creditors on a periodic basis throughout the term of your IVA. A lump sum can sometimes be accepted by creditors.

An IVA is also a way forward for sole traders and business partnerships, where short term cash flow problems have been encountered but the business remains viable and profitable.

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