Individual Voluntary Arrangement (IVA)
An IVA is a procedure for individuals, which is an alternative to bankruptcy. The process is legally binding and allows an individual to put forward a proposal to their creditors for a financial settlement of debts over a period of time.

Assets need to be realised for the benefit of the creditors in the proposal. This is usually from the sale of an asset and/or contributions from income. If you wish to proceed with an IVA a Licensed Insolvency Practitioner should be appointed who will prepare the proposal and try to get the necessary approval of creditors. If the terms of the agreement are defaulted on, it usually results in a bankruptcy order being made.

Partnership Voluntary Arrangement (PVA)
This can be used to prevent the bankruptcy of individual partners. A PVA allows the partnership to continue to trade, with the partners retaining the day to day control of the business. As with an IVA, contributions are made to an Insolvency Practice to repay the creditors of the partnership.
The personal assets of individuals are usually excluded. It is however adviseable for partners to draw up interlocking IVA’s to maximise protection.

Company Voluntary Arrangement (CVA)
Once again, this is controlled by a Licensed Insolvency Practitioner. It is similar to a PVA but is used for Limited Companies.

For further information please contact us your local office or email us on recovery@dains.com.