Whether or not an IVA (Individual Voluntary Arrangement) is something that will be either available to or suitable for you really depends on your own particular circumstances. The best way to work out what your options are is to discuss your case with an Insolvency Practitioner.
There are few real restrictions on IVAs, for example, there is no maximum or minimum amount of debt that must be involved for an IVA. Similarly, there is no restriction on the amounts of repayments that you propose as part of an IVA. The basic idea behind the IVA is that it is an agreement that you are able to keep to. This means that it should only commit you to paying back what you can realistically manage to pay.
Ultimately, it is up to your creditors to decide whether or not to agree to an IVA for your debts. Your Insolvency Practitioner will put the proposal to them via the courts and they will then meet to discuss whether or not to accept it. Although they will naturally receive less than what you’re currently committed to in terms of repayments, the chances are that they will recoup more of the debt than if you end up becoming bankrupt. For this reason creditors are often inclined to accept an IVA.
An IVA is not a way to avoid paying back your debts, although in some cases parts of the debts may indeed be written off. It is really a way to manage paying the debt back over time, and allows you to get back on top of the debts rather than them continue to spiral out of control.
The usefulness of IVAs will of course vary in different cases. Seeking the advice of a licensed Insolvency Practitioner is the best way to work out whether an IVA is something that you should explore.