What is an IVA? Individual Voluntary Arrangements Explained

In the context of debt management, the term IVA stands for an Individual Voluntary Arrangement. This is essentially speaking, a legally binding contractual agreement between the two key parties involved in the debt: the debtor themselves and their creditor or collected group of creditors. IVAs will always be overseen by a qualified and legally licensed insolvency expert or practitioner who will carefully monitor the deal. 
     Although not always the best option to handle your debt, an IVA can be advantageous in some individual's personal circumstances - and can even be of benefit to both parties in the long run. This is because it will allow the debtor the possibility of avoiding the immediate negative implications of declaring themselves bankrupt - and as such, it may also therefore allow the creditors to receive a larger amount of the moneys owed to them, although often over a protracted period. 
     Not everyone will be able to manage there debts via an IVA however. In order to apply for an IVA the debtor must have a debt in excess of £15,000 and owe moneys to at least 3 separate parties. The creditor must also be in employment in order to apply and be aged 18 years or over.