An Individual Voluntary Arrangement, also known as an IVA, is a recently-introduced alternative to bankruptcy. It is designed to help people with serious debts get their finances back on track. Carrying less stigma than declaring yourself bankrupt, it has become a popular way to face up to your insolvency problems, but it is only suitable for certain people with certain debt problems, which is why you should always talk to an insolvency specialist before you commit to anything.

How will I know if an IVA is for me?

If you're in serious debt – tens of thousands rather than a few hundred – and you have a regular income, you should think about contacting someone to discuss an Individual Voluntary Arrangement. It's important that you have a reliable income coming into your home, because you will be committing to an agreed monthly payment, which you must meet. If you don't make these payments, you run the risk of being declared bankrupt by your creditors. The best thing to do is to look at all your debts and add up how much you owe to each lender, and what interest rates you're being charged. An Individual Voluntary Arrangement is specifically designed for those people who are insolvent and simply can't pay their debts, and an insolvency adviser will be able to look at your debts and your income and help you to assess your position,

What is the IVA process?

An IVA must be arranged by an insolvency practitioner. They will need to:

• Assess your circumstances to decide whether an IVA is the right route for you
• Make a comprehensive list of your creditors
• Look at your finances to see how much you can afford to pay each month
• Invite all your creditors to a meeting to propose an IVA on your behalf
• Administer the IVA if your creditors vote in favour of the process

What are my responsibilities?

Once your creditors have agreed to take part in an Individual Voluntary Arrangement, you must keep to your side of the bargain: to pay the agreed amount every month. Creditors are becoming strict about who they accept as an IVA client, so you must be prepared to organise your finances so that you can pay back the money you owe. Don't forget that your creditors are unlikely to give you a second chance; if you miss these monthly payments, you are likely to be declared bankrupt so that your lenders can recover their money. You also need to remember that an IVA will stay on your credit record for at least 6 years after it has finished, and that this may affect your ability to secure credit or loans in the future.

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find an insolvency solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.