Individual voluntary arrangement
A formal arrangement with creditors under Northern Ireland insolvency law.
An IVA allows an individual to propose a binding way to deal with debts, usually through agreed payments or other funds. A licensed insolvency practitioner acts as nominee and normally becomes supervisor after approval. Northern Ireland’s statutory procedure is separate from the England and Wales framework.
Prepare a realistic proposal
The proposal should explain assets, income, essential household spending, creditors, contributions and fees. It should also say what happens if circumstances improve, worsen or make continued payment impossible. A monthly figure must be sustainable for the household, rather than merely acceptable on paper.
The individual needs to compare all suitable alternatives, including a DRO, bankruptcy or an informal repayment arrangement. The legal consequences do not depend on the label used in an advertisement. Independent debt advice can help distinguish the formal arrangement from the sales process.
Creditor decision and protection
Creditors consider the proposal through the required procedure. Statutory voting rules and any agreed modifications determine whether it is approved and whom it binds. A creditor’s debt amount, entitlement to vote and security can matter more than the number of creditors.
A proposal does not itself provide a universal pause on enforcement. An interim order may be relevant while the IVA is being arranged. Secured claims, preferential rights, joint debts and guarantees each need attention; they should not be described as automatically extinguished.
Technical detail
Part VIII of the Insolvency (Northern Ireland) Order 1989 and the Northern Ireland rules govern the route. Do not automatically apply England and Wales forms, creditor decision rules or consumer protocol terms.
Living with an IVA
The supervisor administers the approved terms, collects contributions and distributes money after agreed costs. The individual must keep records, cooperate and report changes. The arrangement may require periodic reviews and set out how additional income or assets are treated.
A loss of income or missed payment needs prompt discussion with the supervisor. A variation may be possible, but it depends on the terms and any creditor approval needed. If the IVA ends unsuccessfully, recovery action or bankruptcy can follow; money paid into an unsuccessful IVA is not simply treated as a refundable deposit.
Completion and records
The actual arrangement determines the term and completion conditions. Once the necessary payments and other obligations are satisfied, the supervisor undertakes the final administration and confirms completion in accordance with the terms.
Public registration and credit-record effects are separate from the performance of the arrangement. Keep the approved proposal, modifications, annual reports and completion evidence together. These documents are more reliable than an initial marketing estimate of the likely outcome.
The process, at a glance
- Advice and assessment. Check affordability, assets, qualifying alternatives and the consequences of failure.Process stage — practical timing varies
- Nominee prepares. The individual provides a full statement of financial circumstances and proposed terms.Process stage — practical timing varies
- Creditors decide. Voting and modifications determine whether the arrangement is approved.Process stage — practical timing varies
- Supervision. Make contributions, provide information and follow review or variation provisions.Process stage — practical timing varies
- Completion or failure. The outcome depends on performance and the approved failure provisions.Process stage — practical timing varies
Sources & review
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Initial source-based editorial review: 26 Oct 2026. Next scheduled review: 26 Jan 2027. Substantive changes are reviewed before publication.
Original editorial summary checked against the linked official guidance. Individual circumstances and the operative legal documents can change the outcome.
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