Individual Voluntary Arrangements(IVA's) can ONLY be undertaken by a Licensed Insolvency Practitioner. Anyone else claiming to offer a similar solution is only offering an informal arrangement which is not binding on everyone.

IVA's are an acceptable alternative to bankruptcy. As IVA's are registered with the Courts it only requires 75% of those who vote at a Creditors' Meeting to support your proposals to bind all your creditors who are notified to accept the agreed terms.

What is an individual voluntary arrangement?

• It is an agreement between you and those to whom you owe money (your creditors) to pay them part or all of your debts.
• It is sanctioned by the Court and so, once accepted by a majority of your creditors, it is legally binding on all of them.
• It may last for any period up to five years
• It is monitored by an Insolvency Practitioner, known as your Supervisor
• At the end of the Arrangement, providing that you have complied with its terms, your creditors will write off any balance of debt still owing leaving you free to start again.
• It is an alternative to bankruptcy

What do I offer?

• Commonly, an offer will be to monthly contributions from your surplus income - you will make one payment to your Supervisor, by standing order, rather than many unstructured payments to your separate creditors.
• The amount of the monthly contribution will depend on your current income and expenditure. They will be set at a level you can afford.
• You may decide that a friend or relative can lend you money to make a one off offer to your creditors. This will shorten the period of the Arrangement and may well be accepted.
• You must disclose all details of your assets and liabilities to your creditors, all assets and liabilities will be dealt with within your arrangement.

Will this affect my ability to obtain credit?

• If you are in financial difficulties, it is likely that obtaining credit is already difficult
• A Voluntary Arrangement will show up on a credit search, there is a central register.
• However, a Voluntary Arrangement is not advertised. It is disclosed to your creditors only so will not appear in your local paper.
• It does not, in theory, affect your ability to obtain credit. In practice, obtaining credit will be difficult.
• It need not be disclosed to your employer.
• It does not affect your rights to be employed or self-employed
• You will continue to operate a bank account and control your own affairs.

How do I apply for a voluntary arrangement?

• We will prepare the proposals on your behalf, arrange to lodge them in Court, contact your creditors and generally take all steps necessary to put the arrangement in place.
• You will be required to provide us with full and complete details of your affairs and to attend a Meeting of Creditors with us to discuss your proposals.

This is meant only as a guide to Voluntary Arrangements, to obtain further information and advice contact Ian Williamson  or Janet Stevenson.