Irwin & Company,
An alternative to bankruptcy, an Individual Voluntary Arrangement (IVA) is a legally binding agreement between an individual and their creditors. Under this procedure, a licensed insolvency practitioner is appointed as nominee to prepare a report on proposals to be put forward to creditors. Under certain circumstances, such as threat of legal action an interim order can be sought from the court upon its consideration of the proposal which will provide protection from creditors taking further action.
For the proposal to be accepted, 75% of creditors by value must vote for it. Any creditors who disagree are still bound by the decision. Creditors can ask for changes to the proposal at the meeting.