Are you unable to repay your loans? Are your debts and interests piling sky-high? Do you find yourself on the brink of filing for bankruptcy? Every year, thousands of Hong Kong citizens go into debt they can’t repay. Plus, the skyrocketing interest that accompanies every loan does not make it easier for individuals to repay their loans on time. The only hope seems to be to file for bankruptcy.

But there is hope – without bankruptcy. Our Individual Voluntary Arrangement Hong Kong services can immediately stop creditors hounding you for their money and give you easier repayment options.

Benefits of applying for IVA in HK

  • Drastically reduced monthly payment to your creditors.
  • IVA in Hong Kong means a better standard of living and less financial burden on you and your family.
  • No need to file reputation damaging and credit-damaging bankruptcy.
  • IVA in HK can maintain your current credit rating
  • Individual Voluntary Arrangements have a quick and easy application process. All debt problems are sorted after you take the oath.
  • Interest rate can be reduced by as much as 80%.
  • Protect your current job by not filing for bankruptcy.

How is Individual Voluntary Arrangement in Hong Kong defined?

According to Article 20 of Chapter 6 of the Bankruptcy Ordinance, Individual Voluntary Arrangements in Hong Kong (IVA) is an established option for people that are facing the possibility of filing for bankruptcy. The debtor needs to find an IVA Hong Kong nominee (who has to be a professional accountant or lawyer) to propose a repayment proposal to the creditor which ensures that the debtor’s assets can be properly distributed to/among the creditor(s). At the same time, you can also file an application with the court for an interim order. During this period, no one can take or continue any ongoing bankruptcy petition or other legal proceedings against the debtor.

The method of pursuing IVA in Hong Kong is effective, it will not only reduce your economic and psychological burden, but also avoid ruining your credit ratings or impacting your work and professional standing. To pursue Individual Voluntary Arrangements in Hong Kong, you only need to submit all the required documents, and then arrange to take an oath in a lawyer’s office within 7-10 days. Our professional IVA HK team can help notify your creditors (such as banks and financial institutions, etc.) the next day to greatly reduce the unnecessary hassle from debt collection companies.

Key Principles of an Individual Voluntary Arrangement

Individual Voluntary Arrangement reorganises all the current debts according to the personal and financial situation of the debtor through its registered legal representatives and accredited accountants. They will collectively propose a new repayment plan to the court and creditors, and arrange a meeting with creditors to negotiate and confirm on the Individual Voluntary Arrangement plan. After reaching a new repayment agreement for IVA in Hong Kong, the court will then issue an order to allow the debtor to fully repay the current debts in accordance with the newly agreed Individual Voluntary Arrangement plan. The general repayment interest rate can be effectively reduced by up to 80% compared with the original rate in some cases, and serves to greatly alleviate the financial pressure and avoid the need to file for bankruptcy while also having the ability to turn the page and start a new life.

Bankruptcy will undoubtedly destroy the debtors’ credit rating and reputation. Debtors may lose their jobs, especially if they are currently employed in industries involving finance, professional fields, roles with authority or if they are civil servants. Unlike with bankruptcy, Individual Voluntary Arrangements will not leave any record of bankruptcy, so it can greatly help reduce the risk of destroying one’s personal reputation, and will not be subject to any bankruptcy restrictions. For those working in professional industries, IVA in HK can be their best solution.

Application Requirements for IVA in Hong Kong:

  • IVA in Hong Kong requires debtors who have a relatively stable income and owe an amount equivalent to more than ten times their monthly salary.
  • IVA in Hong Kong requires debtors with occupations in sensitive fields or posts, who cannot file for bankruptcy.

What types of debts can be dealt with IVA in HK?

  • Credit Card Debts
  • Bank Personal Loans
  • Finance Company Loans
  • ”One-off” High Interest Loans
  • Credit Union Loans
  • Student Financial Assistance Loan
  • Tax Obligations

The Individual Voluntary Arrangement Hong Kong Process

IVA Application Process Estimated Time Frame (From date of application start date)
Phase 1

The debtor brings relevant debt and income information to start the IVA Hong Kong consultation and analysis process. After we have accepted the application, the nominee draws up a repayment proposal. We only accept individual voluntary arrangement applications with a likely success rate because there are some debt situations that are not suitable for IVA in HK.


We will be honest in reporting your situation and will not waste your time and money. Based on our wealth of experience with IVA in Hong Kong, our objective is to balance the interests of creditors and debtors to achieve a win-win situation for all parties involved.


Besides recommending the debt repayment schedule (monthly amount, number of payments, and interest rates), the applicant’s basic living expenses would be listed; the applicant’s assets such as any owner-occupied properties, private vehicles, insurance, pension, etc. would also be clearly listed.

Day 1
Take an oath, and then the representing lawyer will submit the application for an interim order to the court for filing Within 2 weeks
Phase 2
Court hearing to issue IVA Hong Kong interim order Approximately 3 weeks
Publish a notice to creditors (one each in a local Chinese and English newspaper) Approximately 3 1/2 weeks
Host meetings with creditors regarding the proposed individual voluntary arrangement plan Approximately 4 weeks
Phase 3
If a majority of the creditors or their attending representatives agree and pass the resolution (constituting more than 75% of the total value of the debts held by these creditors or representatives), the individual voluntary arrangement would be implemented.

About Individual Voluntary Arrangements in Hong Kong – FAQs:

About Individual Voluntary Arrangements in Hong Kong – FAQs:

  • 1. Would I benefit from the Individual Voluntary Arrangement in Hong Kong?

    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.
  • 2. What is the advantage of the Individual Voluntary Arrangement in Hong Kong?

    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.

  • 3. What terms and conditions must I meet to avail the Individual Voluntary Arrangement?

    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.

  • 4. What is the difference between Individual Voluntary Arrangement in Hong Kong and Debt Relief Plans?

    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. 

  • 5. What is the difference between Individual Voluntary Arrangement in Hong Kong and Interbank Debt Relief Plans?

    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.

  • 6. What information does your company require to start the Individual Voluntary Arrangement process?

    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.

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