Individual Voluntary Arrangement (IVA)

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	Status			This kind of arrangement is for an insolvent individual wishing to avoid bankruptcy, who is in a position to either trade their way out of debt, or who is reasonable certain of settling what they owe by some other means within the foreseeable future.
	Appointee			The individual appoints an insolvency practitioner as a nominee to consider proposals for a compromise or arrangement with the creditors.
	Procedure and outcome			An application is made to court for an interim order freezing the creditors' rights for two to three weeks. During this time, the nominee arranges for the creditors to meet to discuss and decide whether they will accept a proposal to either settle all, or part of the debt. If the proposal is approved: The court is advised and a supervisor is appointed to oversee the implementation of the proposals. The supervisor is charged with the responsibility of reporting on how the individual is progressing, and to ensure that any agreed distributions are made in a timely and fair manner. After fulfilling the obligations of the proposal, the individual can now continue to trade as normal. If the proposal fails to be honoured, the supervisor may apply to the court to have the voluntary arrangement brought to an end. The court will grant an order declaring the individual bankrupt. If the proposals is rejected: The creditors or debtor can petition the court for a bankruptcy order.
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