Simply, an IVA is a formal agreement between you and your creditors. This
agreement, if appropriate, is based on how much you can afford to pay each
month and usually lasts for a period of 60 months. Once all required payments
are made, the outstanding debts are written off.
The IVA must be approved by your creditors and, therefore, your proposal must
be a complete and honest reflection of your earnings and assets. The creditors
make an informed decision based on each individual case and the offer put
forward. An IVA proposal can only be presented to your creditors by an
Insolvency Practitioner who has considered your case and believes it to be fair
and reasonable to both you and your creditors.