Individual Voluntary Arrangements (IVA)

The Individual Voluntary Arrangement is a relief measure for you if:

• You have taken out a heavy loan and cannot repay your debts and the high interest associated with your loans.
• You do not want to file for bankruptcy.
• You have a stable job.

The Individual Voluntary Arrangement is an alternative to bankruptcy and a chance to repay your loans at a lower interest rate, and with a new pay-by date. Through the IVA HK, you have a longer repayment period of your existing loan and pay less than the originally agreed interest.

IVA in HK is your chance to clear your debts easily. A new repayment proposal model will be created and proposed to your creditors. If most of your creditors accept the new payment terms, your current debt repayment scheme becomes null and void, and the new proposal comes into play. You get a new lease of life in terms of debt repayment, and you won’t have to file for bankruptcy. Up to 80% of your interest can be waived, and most of what you have to pay back is the principal amount that you were loaned.

The Hong Kong Professional Debt Relief Centre aims to ensure that both parties (the debtor and all the involved creditors) benefit from IVA in Hong Kong. Not all debt situations have a 100% chance of success through IVA in HK. So, your case must have a likely chance of success for your application to be approved. Once we approve your application, you must be willing to take an oath to abide by the new rules of the proposal. Finally, once the proposal/interim order has been submitted and filed in court, a majority of your creditors must agree to the new repayment proposal drawn up by us. Then, and only then, will IVA in Hong Kong be implemented.

DRP is very similar to the Individual Voluntary Arrangement, but it is not the same. While IVA in HK requires you to go through the court to approve the new repayment proposal, DRP does not require the court to get involved. People who are in heavy debt and don’t want to involve the court prefer the Relief Plan. In the case of the DRP, you will have to directly negotiate any new repayment plans with your creditors. 

The Individual Voluntary Arrangement Hong Kong takes into account all the creditors involved, and payment must be made to all the individual creditors. In the case of the Interbank Plans, negotiations are made only with the largest creditor, who also takes over all the other debts owed to the other creditors. According to the interbank plan, the debtor will only have to pay the largest creditor the agreed-upon amount.

If you are a debtor looking to avail of IVA in HK, we will require all the information related to your current debts and proof of your income. We will need to verify that you have a stable income and that your debts are over 10x of your monthly salary. You will also have to have a minimum of three creditors to apply for IVA in HK.

When you apply for Individual Voluntary Arrangement in Hong Kong, we will scrutinise your financial situation and your ability to pay off your creditors. If you fulfil all the requirements, we will create a new payment plan that your creditors approve. But more importantly, it will be a restructured debt plan that will allow you to clear your debts on time.