An individual voluntary arrangement is an alternative to bankruptcy that will often protect your assets that a bankruptcy would expose. The basic idea of one of these arrangements is that you and the creditor work out what you can afford to pay on a regular basis and go from there. They are often accepted over bankruptcy because they will make a creditor more money than a bankruptcy will. An IVA is both a good and bad deal. It's good because you will end up with a plan that you can afford to pay without worrying about not having the money to cover your bills. It is bad because it not only draws out interest even longer, but it also leaves you with additional fees that you wouldn't have normally paid. An IVA is not a solution to help save your credit score, although if you are applying for one you probably have a poor score already. Although it is often seen as a little better than a bankruptcy it hurts your score the same and it will remain on your records for six years just like a bankruptcy. One of the best things about an individual voluntary arrangement is the fact that creditors have to abide by what is decided on in the arrangement. The deals will often protect you from having any further action taken on you and you can rest assured that your assets will remain safe as long as the deal is in place. One of the main reasons why people go for this kind of deal is to protect their home. Many people don't realize that they are at risk of losing their house when they go through a bankruptcy, but if the trustee deems that it is in the best interest of everyone to sell off your house it will be gone quicker than you can imagine. In order for you to get an IVA put into place, at least 75 percent of the creditors that you owe money to have to agree to the deal. This means that if those three quarters of the people agree to the offer then the remaining quarter is also bound by the deal as well. You will be protected by the deal from everyone even those who didn't want it. If you aren't able to keep up with your side of the arrangement there is nothing to protect you from going into a bankruptcy. That will be the next step of the process and you will have to run the risk of losing your property that was once protected by the arrangement. Although an individual voluntary arrangement isn't for everyone, it is a good option for some people who are trying to avoid going into a bankruptcy. Just make sure that the terms are something that you can handle before you agree to the arrangement. I'm a wealth management professional specializing in debt consolidations. You may also be interested in reading more information about individual voluntary arrangement.