In order to apply for an IVA a person:
Your insolvency practitioner is obliged to petition for bankruptcy if you fail to meet the terms of your IVA, for example if you miss payments. You should not enter into an IVA unless you are totally committed to avoiding bankruptcy and can afford the monthly payments. There are 3 parties involved in an IVA: You, the debtor, a number of creditors to whom you owe money and an Insolvency Practitioner.
An IVA is normally suitable for the following types of debt:
There are some debts which are not suitable for an IVA, these are normally debts which are secured against property or vehicles, such as mortgages, hire-purachase agreements, rent, parking offences.