Individual Voluntary Arrangement

If you have consumer debts in excess of £15,000 and are really struggling to meet your regular payments, to the extent that bankruptcy seems a worrying possibility, then an Individual Voluntary Arrangement (IVA) could be a helpful course of action.

An IVA is a legally binding contract, supervised by a Licensed Insolvency Practioner, between you and your creditors. It keeps you from bankruptcy and the prospect of losing your home. It is also a private arangement between you, your creditors and your professional adviser, so there is no need for the public to be aware of your situation, as would be the case with the publicity following a bankruptcy hearing. It is available to individuals, sole traders and partners in business.

Creditors are prevented from chasing you for repayment, and they have to freeze future interest and other charges, so the pressure is taken off you. Your debts are reduced to a level that you can afford and which can be cleared in three to five years, so you don't experience continuous stress over how you will meet payment deadlines. And, of course, you will become debtfree in a planned period of time.

• How to arrange an IVA
• How does an IVA work?