Individual Voluntary Arrangement (IVA)

Take control of your financial situation with an Individual Voluntary Arrangement (IVA).

It’s an empowering solution that allows you to negotiate with your creditors and repay your debts, either in full or in part, over a manageable period of time. Say goodbye to the looming threat of bankruptcy and regain your financial stability.

As licensed insolvency practitioners, our primary goal is to ensure your complete understanding of the available IVA alternatives. We are dedicated to tailoring affordable and reasonable payment arrangements that cater to your specific needs. By the end of the IVA journey, any remaining unsecured debt will be completely written off, granting you the freedom from debt you deserve.

Process: How IVA works,
step by step

If you’re really not sure if IVA is an option for you,
we’ll help you decide, step by step.

Step 1

Set up a free, no obligation consultation, meet or chat remotely with a qualified insolvency practitioner. We’ll have a frank conversation about whether IVA is the right option for you.

Step 2

We’ll request supporting information to help prepare an IVA proposal.

Step 3

We’ll set up a creditors’ meeting and work out what you can afford to repay and how long the IVA lasts.

Step 4

Ensure your IVA agreement approved – from that point creditors will stop contacting you and your assets will be safe.

Step 5

Issue a completion certificate, any remaining debt will be legally written off.

FAQ's

What is an Individual Voluntary Arrangement or IVA?

An individual voluntary arrangement (IVA) is a legal agreement between an individual and their creditors to repay their debts, usually through an agreed affordable monthly payment over a five-year period. The amount agreed to must be reasonable and usually results in a percentage of the debt being repaid and the remaining balance being written off. For an IVA to come into effect, at least 75% of creditors who vote on it must agree to its terms.

At the end of your IVA any unsecured debt left is written off.

You can also make a one-off payment known as a lump-sum IVA, which will mean that an IVA may only have to last a few months.

What are the advantages of an IVA?

Creditors will receive a more favourable return than in a bankruptcy scenario
Individuals will avoid the stigma, restrictions and consequences of bankruptcy as well as maintaining control of their estate
Interest on debts will cease to be applied on approval of an IVA
In certain circumstances, creditors will write off a significant proportion of their debt
Once complete, an individual voluntary arrangement will leave the individual debt-free

How do I know if I’m insolvent?

Before we can consider the various solutions available for an individual, it is important to first understand what the term insolvent means.

An individual is insolvent when they have insufficient assets to cover their liabilities/debts or are unable to pay debts when they fall due.

Case Study

A PRACTICING BARRISTER

Avoiding the threat of bankruptcy from HMRC.

Testimonials

I would like to thank everyone at BABR for the quality service received during what were challenging times for us as a business. I found them to be friendly and responsive to our needs, always clear in their instruction and worked to make the entire process as simple and painless as possible. I would recommend BABR to anyone needing their expertise and support in what can be the most challenging time you can face as a business.

I decided to retire from consultancy & to liquidate my sole trader company. My accountants recommended Bailey Ahmad. The advice & support was excellent throughout not least from Sarah Broom who led the process. The explanations of the technical processes were clear & accessible, the advice was first rate, & the communications were excellent. This was all immensely reassuring. It has been a protracted process entirely due to unacceptable delays at HMRC but Sarah has chased them with energy and persistence keeping me briefed on her efforts. I can’t commend them too highly- extremely competent & wholly professional while being warm and friendly to deal with.

The loss of a business through insolvency is devasting to those involved. Building up a business from scratch, putting your heart and soul into making it a success and having high hopes for the future, perhaps passing the business on to a younger generation, can be snatched away, normally by circumstances totally outside of the business owner’s control. The loss of a business is personal. It is therefore so important that any liquidation is handled with this in mind and that business owners going through such a traumatic event feel supported and are treated compassionately. The team at Bailey Ahmad Limited (BABR) tick all boxes. They are professional, compassionate, understanding and supportive. Of course, liquidation is a serious matter and there are formalities to complete, but if a business owner feels supported and not made to feel a total failure, the process does not feel so daunting. I cannot recommend BABR highly enough.

Our client manager Sarah made the whole process simple and transparent. Her explanations of the complexities surrounding affairs were clear and easy to understand. The communication throughout has been great, always keeping me updated and in the loop. I would highly recommend Bailey Ahmed, extremely professional whilst being open and friendly through this process.

Excellent service from BABR in executing our recent voluntary liquidation. Smooth process with clear instructions and great communication throughout. Special mention must go to Sarah Broom who was so professional, friendly and easy to work with. Met with us at the start of the process, guided us through and was simply exceptional.

"This was an excellent service from start to finish. My client manager was proactive, communicated regularly, and worked brilliantly with my accountant as well as providing a legal representative recommendation. This made the whole process easy and stress-free for me. I would highly recommend!"

A seamless and well-communicated experience using BABR for our recent voluntary liquidation. Initially considered not utilizing business asset disposal tax relief as thought it was going to be a long and tiresome process. However, the initial distribution took less than four months in the end. Would highly recommend this firm and can't thank Sarah Broom enough for her time, knowledge and friendly approach in guiding us through the process.

I was first introduced to BABR some 3 years ago when attempting to wind up two companies in my father's estate. Sarah Broom, their client manager, has been so supportive throughout what was personally a negative experience. Polite, extremely helpful and knowledgeable and an absolute joy to encounter as I felt safe as at all times that the technical side of the process would be handled with care and expertise. I could not recommend them highly enough.

When I retired in 2023, my accountant recommended a Members Voluntary Liquidation (MVL) of my 10-year old business as the most cost-effective way to wind up the company. The first meeting I had with Paul Bailey, one of the directors, immediately established a relationship of trust. His explanation of the process instilled me with confidence in their business. The BABR staff managed the liquidation process in an excellent manner and they clearly communicated the process every step of the way. Sarah Broom is highly competent and managed the whole process extremely well. She was assisted by Molly Dunn and between the two I was always kept in the loop about the progress. They are very knowledgeable about their field of expertise. They provided me with an accurate quotation of the costs from the outset and the liquidation process was completed within 3 months. I can highly recommend the services of BABR.

"Thank you so much for all the hard work you and your colleagues carried out on my behalf in winding up my old Company. From the first day I have found that all correspondences were replied to quickly, and I was kept in loop all the way through the process. I would certainly recommend your services to any other organisation going through the same process."

Phone number: +44 (0) 208 662 6070

Email: enquiries@babr.co.uk

Individual Voluntary Arrangement (IVA)