|An individual voluntary arrangement ("IVA") is a legally binding agreement between an individual and their creditors which allows them to pay all or part of their debt over a fixed period of time. It also provides creditors with a better return than if the individual were to enter into bankruptcy.
The procedure is managed by a "Supervisor", who must be an authorised licenced insolvency practitioner.
The proposed IVA will be presented to the individuals creditors and if approved by 75% of creditors by value that vote, the IVA will be approved. The Supervisor will oversee the conditions of the IVA, receive contributions and/or realisation of assets and make regular distributions to the individual's creditors. An IVA is an alternative to bankruptcy, has a degree of built in flexibility and will be tailored to the specific circumstances of each individual case.