The following Restructuring & Insolvency guidance note Produced in partnership with Paul Allen of FRP Advisory LLP provides comprehensive and up to date legal information covering:
An individual voluntary arrangement (IVA) is an agreement entered into between an individual and their creditors under the Insolvency Act 1986 (IA 1986). The IVA is effectively a contract between the parties and is prepared by the individual and provided to their creditors to make a decision on.
It is for the debtor to propose to their creditors how long the IVA will last. This will often depend on, for example, the nature of the proposed source of income into the IVA: income derived from the debtor’s continued trading will usually necessitate a more lengthy IVA period, whereas a large lump sum contribution may shorten the period. The debtor will be advised and directed by an insolvency practitioner (IP), who will ask to be the debtor’s nominee (and who would usually become the supervisor of the IVA in the event that it is approved), although it is ultimately the debtor’s decision.
The duration of an IVA can be anything from a few weeks/months to a number of years, although an IVA will generally last no more than five years.
For more information on the implementation of an IVA, see Practice Note: The process of entering into an individual voluntary arrangement (IVA).
There are a number of factors that
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