Personal insolvency

Finding yourself unable to pay your debts and facing bankruptcy can be a daunting, stressful time. Though the temptation may be to ignore your creditors and debts, this will only make the situation worse. It is crucial to seek advice at an early stage.

An individual voluntary arrangement (IVA) is a way of dealing with personal debts that you find you cannot pay by the date they are due.

Through an individual voluntary arrangement, you make an agreement with your creditors, proposing an arrangement by which to settle your debts. This agreement will be approved by the court. In an Individual voluntary arrangement, you have formally agreed terms with your creditors on how to settle your debts.

Creditors vote on whether an individual voluntary arrangement is to be considered. If a majority (in excess of three-quarters in value of the debt) of creditors accept the proposal, all creditors are bound by the arrangement. Upon completion of your individual voluntary arrangement, any unpaid debt will be legally written off as part of the agreement.

An individual voluntary arrangement must be supervised by an insolvency practitioner.

Once you are bound by an individual voluntary arrangement, your creditors cannot take any further action against you, unless you fail to fulfill the terms of the agreement. If you should fail to fulfill terms of the agreement, the insolvency practitioner or any creditor bound by the agreement can still petition for your bankruptcy.

It is better and cheaper for you to set up an individual voluntary arrangement before you become bankrupt but you can propose one afterwards.

Our team of experienced solicitors are experienced in acting for clients in these stressful cases. We can provide you with advice, helping you through this situation in the quickest way possible.