An IVA is an agreement between a debtor and creditors. The debtor agrees to pay all or part of the debts and to make regular payments to an insolvency practitioner known as a nominee. The nominee distributes the funds received from the debtor to the creditors.

Credit Intelligence, through its wholly owned subsidiary, HKIVA, provides IVA consultancy services to debtors who wish to avoid bankruptcy and proposal implementation services to the nominees.

An IVA not only helps debtors avoid bankruptcy but also provides relief from the constant demands of creditors. For a creditor, an IVA provides an end to costly enforcement proceedings and delivers certainty on the amount of debt owing.

HKIVA evaluates a debtor’s financial position and then provides them with practical advice. Once the debtor has agreed to proceed, HKIVA arranges the start of the formal legal process, which includes drafting of the IVA proposal, liaising with the relevant creditors and processing the court application. After the proposal has been approved, the nominee is appointed to implement it. HKIVA provides supporting services to the nominees during the implementation period, offering assistance with administration and liaising with the creditors.

The debtor pays HKIVA a pre-determined service fee by instalments at different stages of the application. 

Credit Intelligences market share for IVA services was stable at around 2~3% from 2015 to the first five months of 2019.