Individual voluntary arrangement

  • An IVA is a flexible procedure that allows a debtor to agree with creditors to a scheme that provides a better recovery than bankruptcy under the circumstances.
  • An IVA has to involve either a composition (i.e. creditors receiving less than they are owed) or a scheme of arrangement (i.e. a rescheduling of the debtor/s liabilities).
  • The terms are binding on all creditors if the requisite majorities approve the terms at a meeting. In either case, creditors would need to be convinced that it offered a better outcome than a winding up to be prepared to approve it.
  • IVAs work well in situations because they are flexible and can be tailored to the particular circumstances.
  • In many cases however, particularly involving consumer debt where the restrictions placed upon a bankrupt are not regarded as onerous, many debtors prefer to enter into bankruptcy, which offers a shorter timescale to release from liabilities and lower future commitments.

KIS can provide you with prompt and constructive advice if you are experiencing financial difficulty or simply need to explore financial options.

The sooner you seek advice from an experienced specialist, the greater the opportunity to reverse financial difficulties or resolve monetary issues.

KIS provide initial explorative consultations, held at our offices, which are undertaken free of charge and overseen by one of our two experienced and licensed Insolvency Practitioners.

Act now and contact KIS today to arrange a consultation

Tel: +44 (0)208 441 2000
E-mail: kis@kelmanson.com