Individual Voluntary Arrangement

Individual Voluntary Arrangements (IVAs) were introduced as part of the 1986 Insolvency Act. Their purpose was to help sole traders and partnerships avoid bankruptcy.

To qualify for protection in an IVA one must meet the following criteria –

1. Is the individual / business insolvent? (Department of Trade and Industrys' definition of insolvency is “The business or individual cannot pay debts when they fall due.”)
2. Can a meaningful contribution be made?

If the answer to 1. and 2. is “Yes”, an IVA can be considered.

Procedure:

1. Prepare a proposal – retain Nominee.
2. Call a meeting of creditors.
3. To succeed the proposal must be accepted by 75% by value of their creditors who voted.
4. Appoint Supervisor.
5. Make contributions for duration of the IVA.

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