Government introduced individual voluntary arrangements for the people who are on the edge of filling bankruptcy. It was introduced by the Insolvency Act of 1986 as the alternative option to bankruptcy.
An IVA is a legal contract between the debtor and the creditor. Unlike bankruptcy, IVA does not force restrictions and once all the payments are paid, the debtor is free of debts. This continues for 5 years usually. The insolvency practitioners take the responsibility on the debtor