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How is a CVA different to an Individual Voluntary Arrangement (or IVA)?

An IVA is a similar procedure to a CVA, but for individuals, and is an often-used alternative to bankruptcy.  As with a CVA, an IVA is a written contract entered into by 75% or more (by value) of the unsecured creditors, and which binds 100% of them.  Like a CVA, an IVA must be fair and reasonable, and will almost always involve a payment-holiday and/or an amount of the unsecured debts being written off.  


The individual remains in control of his assets, but must deal with them in accordance with the terms of the IVA.  The Supervisor of the IVA will be an insolvency practitioner who must approve of the terms of the IVA before it is recommended to creditors.  The Supervisor's role is to ensure that the individual complies with the terms of the IVA, and to swiftly seek a bankruptcy order if the individual is in breach of any of those terms.

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