Individual voluntary arrangements (IVAs) are a viable alternative to bankruptcy for anyone suffering from financial problems.  It is a very popular option in the United Kingdom and it is a respite for people who cannot make their payments to the creditors for any reason - from sudden lack of income to too much debt as compared to how much money is coming in and so on.  As the debtor, you can pay off all of your debt or just some of your debt over an agreed period of time for a set monthly payment.  When you opt for an IVA, you use an Insolvency Practitioner (IP) to help you reach all of the agreements with your creditors.  IVA can only be filed if three quarters of your creditors accept the proposal you and your IP agree to. 

Because you will be agreeing to paying a reduced amount back to your creditors, having the advice of a qualified IP is important.  They will be able to advise you on how much you should worry about paying, what stipulations you are required to meet, and whether or not you will be able to handle the monthly payments with all of the rest of your monthly obligations.  An IVA lasts for a period of five years and you must have at least £15,000 worth of debt over three or more creditors to qualify for an IVA. 

Like anything else, an IVA filing can go wrong, so having a professional IP on your side is a good idea.  They will be able to tell you what the next step of the process should be as they are experienced in handling these matters on a daily basis.  It is a good idea for you to be prepared for any eventuality, on the off chance that your proposal is rejected by the courts.  An IP will help you get things ready for the proposal and will explain the entire process from start to finish in a kind and professional manner.  You are not the first person they will have helped, and you will not be the last. 

Always use an IP that is experienced with a good track record.  They should be licensed in the United Kingdom and they should treat you with respect and understanding.  They should take your situation in perspective as a unique one and work with you as vigorously as they work with your creditors.  As there are very few free IVA advice services, make sure that the one you use offers comparable rates with other IVA services.   

An IVA can save you and your credit record from the negative aspects of bankruptcy unless bankruptcy is the only option you have left.  It keeps your social standing right where it is and you are not labeled with the stigma a bankruptcy leaves behind when you opt and qualify for an IVA.