An IVA is a formal alternative for individuals wishing to avoid bankruptcy.
An IVA constitutes a formal repayment proposal presented to a debtor’s creditors via an insolvency practitioner. Usually (but not necessarily), the IVA comprises only the claims of unsecured creditors, leaving the rights of secured creditors largely unchanged.
An IVA is a contractual arrangement and can be as flexible as an individual’s own circumstances; they can, therefore, be based on capital, income, third-party payments or a combination of these.
The analogous procedure for businesses is the company voluntary arrangement.