An Individual Voluntary Arrangement is a government solution for residents of the UK with a substantial amount of debt. The debtor makes an offer to his creditors that they accept, amend or reject.

There are significant advantages of an IVA against bankruptcy. It gives you more say in how your assets are dealt with and how payments are made to creditors. You may be able to persuade your creditors to allow you to retain certain assets (e.g. home, car). As you would not have to pay some of the government fees which apply to bankruptcy, the costs overall are likely to be less allowing you to pay more to your creditors.

Entering into an IVA agreement will affect your credit rating however, it is more likely to suffer more if you go Bankrupt. With an IVA you are still able to take out a mortgage which is not possible with bankruptcy

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