What is an Individual Voluntary Arrangement (IVA) primarily used for?

An Individual Voluntary Arrangement (IVA) is primarily used as an alternative to bankruptcy for individuals facing financial difficulties. It allows individuals to make formal arrangements with their creditors to pay back a portion of their debts over a specified period, typically five to six years, while protecting them from legal action taken by creditors during this period.

The primary goal of an IVA is to manage and resolve an individual's debts in a way that avoids the more drastic and long-term consequences of bankruptcy. Once the IVA is agreed upon and confirmed, it binds all creditors to the terms of the arrangement, enabling the individual to repay what they can afford while potentially writing off the remaining part of the debt at the end of the IVA period, provided all terms are adhered to.

The other options do not accurately reflect the purpose of an IVA. Liquidating assets of a corporation pertains to corporate bankruptcy processes, while creating a multi-party agreement is broader than the specific framework of an IVA. Forcing creditors to accept less than owed can be a consequence of an IVA, but that isn't its primary function; instead, it's focused on providing an individual with the means to manage their debts while avoiding bankruptcy.