During the previous global economic crisis, a lot of companies went bankrupt, leaving many people jobless and in some cases, homeless. The devastation that the last burst of the global economic bubble has gone to the extent that its setbacks are still felt all over the world, today. While a lot of people were left penniless, there were also some individuals who were wise enough to give themselves and their enterprises a little bit of protection. They did this through the IVA, another option which can help people avoid bankruptcy.

What Is Individual Voluntary Arrangement?

Debt settlement thru individual arrangement (otherwise known as IVA) is, as mentioned earlier, another alternative for people who don’t want to file for bankruptcy. This system was established in England and Wales in 1986 ad it mainly states that a debtor must be repaid by the debtee for a particular period by several criteria.

Individual Voluntary Arrangement options

Who Can Register?

Typically, the personal voluntary arrangement register scheme is availed by persons who have collected large debts for their businesses which are facing bankruptcy. Through an IVA calculator, many credit companies have found out that potential returns are higher in individual voluntary arrangement than in bankruptcy. Hence, they usually approve chosen arrangement applications based on a debtor’s capacity to pay. While some persons avail of the Individual Arrangement for business insolvency issues, some people apply for it just because they have accumulated significant amounts of debts and has a dangerous personal bankruptcy situation. Some people also register for iva to protect their assets such as luxury homes, vehicles, etc. Under normal circumstances of insolvency, these properties are not protected when a person files for bankruptcy, but they are when a person registers for iva.


There are several criteria which must be met to successfully apply for an IVA or personal voluntary arrangement. These standards normally vary from one credit company to the other, so it is important for applicants to remember which companies are reputable, and which ones will further place you in deeper financial trouble. When a creditor considers an IVA application, they first conduct a meeting within a company to decide whether or not they should approve a request. Once they do, the schemes are usually arranged in agreement with an applicant’s capability to pay, in which the criteria for acceptance are also based upon.

Business Liquidations and Individual Protection

In conclusion, a lot of entrepreneurs have already taken advantage of their business insolvency through IVA’s. While this movement was common to alleviate business liquidations, recent trends with individuals applying for IVA to help with their personal bankruptcy is slowly rising. If you are interested in applying for IVA, there are several criteria which you should meet to get in successfully! Likewise, you must also have a particular checklist of reputable creditors to avoid placing yourself deeper into debt. If you are an entrepreneur who is facing business or personal insolvencies but do not want to file for bankruptcy, then we advise that individual voluntary arrangement may be a wiser financial decision.

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