What is the legal position of an IVA?
An IVA forms part of the 1986 Insolvency Act, and is designed to offer itself as an alternative to bankruptcy for people who are insolvent. Qualified professionals, Armed Service Personnel, serving Prison Officers and Police Officers, who otherwise may damage their career prospects by declaring themselves bankrupt, can apply for an IVA to deal with a serious debt problem. Once accepted, the IVA legally binds all parties to the terms offered in the IVA proposal, even those creditors which rejected the IVA proposal.
