AIternative to Bankruptcy - Individual Voluntary Arrangement (IVA)


Q: Is there any alternative to bankruptcy?
A: Yes, the debtor can choose IVA. IVA is a formal procedure under the Bankruptcy Ordinance to provide an alternative to bankruptcy. A debtor makes a repayment proposal to the court and the creditors. If it is approved, it will legally bind all creditors.

Q: What are the advantages of IVA?
A: (a) A debtor can avoid the stigma of bankruptcy. He/She will be free from the legal restrictions provided for under the Bankruptcy and other Ordinances and may be able to retain his/her job/profession.

(b) For the creditors, as compared with bankruptcy, they may expect better repayment from the debtor as the latter would have more incentive to make repayment.

(Hong Kong)


Alan Cheung

Alan Cheung

Director – Hong Kong Office

+852 5128 6432