How to arrange an Individual Voluntary Arrangement (IVA)

It works like this. An application is made to court for an Interim Order that will prevent creditors  pursuing you whilist you seek an IVA. You and your Insolvency Practioner (IP) prepare a 'Statement of Affairs'. It details your income, assets, liabilities and expenses, just like everything we covered in the Create a Budget pages. You decide a proposal to put to your creditors regarding how much you can afford to repay. Your IP would approach all your creditors simultaneously and expect a response from them within a couple of weeks as to whether they accept your proposals, want to amend them or reject them out of hand. Once agreement is reached (usually by a 75% majority by value of debt), and the IVA is processed, both sides to the agreement - you and your creditors - are bound to it by law.

How does an IVA work?