Individual Voluntary Arrangement (IVA)

In certain circumstances an Individual Voluntary Arrangement (IVA) may be appropriate. An IVA is a legally binding agreement on your creditors, and allows you to avoid the costs and stigma of bankruptcy.

Essentially, your creditors will agree to receive part or full payment of their debts over a period of time typically two to five years. Normally the statutory bodies together with your main creditors are contacted to ascertain their views, prior to a meeting of creditors.

Our team have many years experience in the preparation and monitoring of IVA’s and can advise you fully.

For a free, no obligation discussion, please contact a member of our team

on 028 87721194.

Questions

Q. Do all my creditors have to agree?

A. Every creditor receiving notice of the creditors meeting or who is entitled to receive notice is then eligible to vote at the creditors meeting. Anyone entitled to receive such a notice is then bound by the arrangement. For the arrangement to be accepted, 75% in value of those present in person or by proxy at the meeting must agree.

Q. How do the creditors benefit from the arrangement?

A. The proposal sent to creditors will highlight the likely outcome to creditors within an IVA or bankruptcy, together with the timing of payments.

Typically, creditors will receive a greater dividend within an IVA than in bankruptcy.

Q. How are the creditors paid?

A. The supervisor of the arrangement will distribute funds to the creditors in accordance with arrangement that they agreed to.

Q. What does it mean if I am in business?

A. If you propose an IVA then the arrangement often provides for the continuation of the business.

If you have any queries, please do not hesitate to contact our team on 028 87721194.

Please click on one of the following for further information

• Bankruptcy

• Partnership Voluntary Arrangement

• Informal Arrangement