Day: March 16, 2024

What Does an Individual Voluntary Arrangement (IVA) Entail?What Does an Individual Voluntary Arrangement (IVA) Entail?

An individual voluntary arrangement (iva practitioner) is a legal agreement that stops creditor pressure and writes off debts you can’t afford to pay. If you’re thinking about an IVA, talk to a trusted debt adviser first – they can check your debts and make sure an IVA is the right option for you.

Licensed insolvency practitioners are the people who set up and manage debt solutions including IVAs. They may work independently or as part of a company that specialises in IVAs and other debt solutions. Your IP will look at your financial situation and discuss the options available to you, including your spare monthly income, savings, assets and your property. They’ll then work out how much you can afford to pay into your IVA each month.

Understanding the Role of an IVA Practitioner in Debt Management

Once they’ve agreed on an IVA proposal they will send this to your creditors. They might also apply to the courts for an interim order, which stops your creditors from starting bankruptcy proceedings or taking any other enforcement action without court permission while the order is in force.

If you think your IP isn’t acting professionally you can contact the Insolvency Service to raise a complaint. The most common issue they receive is communication breakdown. They’re also looking at the way in which IVAs are managed by volume IVA providers and how the supervision of those cases is carried out. In 2022 there were 82 complaints referred to the Insolvency Service about IVAs, up from 83 in 2021.