If you are facing insolvency, it's because you are financially unable to pay any money you owe. Insolvency isn't a legal state, but it can often lead to bankruptcy, and that's a legal process that should be avoided at all costs. If your debts are mounting up and insolvency looks likely, you need to take action as soon as possible in order to give yourself a chance to sort out your money – and your life.

IVA as an insolvency solution

An Individual Voluntary Arrangement, or IVA, could be the solution you are looking for. An IVA is specifically designed for private individuals; if your business is facing insolvency, you need to talk to your accountant or an insolvency specialist as soon as possible. IVAs work by allowing people with personal insolvency issues to make a straightforward deal with their creditors: agreed monthly payments for a fixed term. At the end of this term all the debts will be treated as cleared. This arrangement brings benefits for all the parties involved:

• For you – you will pay a single, affordable amount each month to the insolvency specialist that is administering your IVA. All you need to do is budget for this amount each month so that you never slip up on payment. The term of an IVA is five years, and your monthly amount should stay the same during that time, so if your income increases, your payment becomes a smaller percentage of your outgoings. You gain the peace of mind that comes with knowing you don't have high interest charges to pay or demand letters falling through your letterbox, and you can concentrate on your work, your family and sorting out your finances.

• For your creditors – your creditors will receive a guaranteed amount each month towards your debt. They will agree this amount in advance with you and your insolvency adviser, and they will also agree that the debt will be cleared at the end of the IVA period. This means that they recover a percentage of their money over the medium term with no other administrative costs to them.

If you are staring insolvency in the face and don't know where to turn next, speak to an IVA insolvency specialist, who can talk you through the process and help you to decide whether it's the right solution for you.

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.