You cannot handle the huge amount on your debt repayment any longer and you are facing bankruptcy. An IVA or Individual Voluntary Arrangement is a strategy of repaying debt. It consists of a legal agreement between you, your creditors and your IP (Insolvency Practitioner). It allows you to repay only a percentage of the total repayment amount. The repayment tenure will be spread over a time span of 5 years. Your payments will be received by your IP and he/she will redistribute it among your other creditors.



An IVA consists of an intricate network of characteristics. You should make yourself aware of them before you finally decide to undertake it. First of all, there are various criteria which decide whether you are eligible for the IVA program or not:





The total amount of your debts should be larger than 15000



You should owe to three or more creditors, all representing different organizations



You have a fixed disposable income above 200 per month. You should also either own assets whose equity can be released or have a third party that could make payments for you.



Creditors that hold 75% or more of your debt must agree for the IVA to be approved.



A nominees report from your Insolvency Practitioner showing that the IVA is a good faith offer from your side is also required.



By availing IVA program, you can get the interest rates and charges frozen. It does not oblige you to give up your professional career; neither is it advertised on the newspapers like bankruptcy. An Interim Order from a court of law can be placed to prohibit your creditors from making any demand. And the best part is, you will be declared completely free from all your debts as soon as the IVA term is over.



There are many agencies who professionally handle IVA services. No-fees IVA also exists so you can search the internet for them. Remember that reputed and experienced IP agencies do not charge money for negotiation with your creditors before they have agreed to the deal. Check out the various websites and gather thorough information about each agency to find one that is compatible with your situation.