what is the process of iva, ive over 46000 in unsecurred debt and far more to pay out each month than whats coming in. me and my wife work full time, motgage our home, not missed payments yet. but getting further into trouble every month now by at least 400.
An IVA is a process whereby you enter into a legal agreement to pay an affordable sum each month to an insolvency practitioner who is empowered to pay that evenly to your creditors over a fixed period - usually five years.
This involves the preparation and presentation of written proposals to your creditors detailing your offer, and a meeting of those creditors to determine whether they will accept the offer. At the end of the period the remaining portion of the debt is legally written off.
That is the very simply answer, but there is far more to understand before proceeding about this, and other options which may be available to you. Can I suggest that you contact an insolvency practitioner for specific advice regarding yor particular circumstances.
This is a typical scenario, based on my own experience.
You'll begin by approaching an Insolvency Practitioner, with whom you will form a proposal. This will start with either a face to face meeting, or in my case a meeting over the phone, to establish an understanding of your own particular circumstances.
They will then figure out what the best response will be in your case. My money would be on you having an IVA proposed, so longs as your still earning.
Your monthly expenditure is reviewed, exclusive of your unsecured debts, which is then compared to your monthly incoming. You can then if the course of action is correct, then apply for a joint or single IVA, depending on your partners circumstances. The amount you can pay towards your unsecured debt, is determined by what you can realistically afford.
Evidence is then collected by the practitioner, an amount is calculated, which is then approved by you (signatures).
A draught proposal is formally written, and then sent to all the creditors involved. They then have to agree to the proposal. 75% vote is required (value of the amount of the IVA) for the proposal to succeed. Mine was adjourned twice because Barclays simply didn't turn up at the time of voting.
A chairman’s report is then sent out to all relevant parties, the court is informed, and all debtors are instructed that the IVA is approved, and that any money owed can only be collected through the IVA. You should also at this stage have set up a simple debit account for all your standing orders salary to be paid into.
Hope this helps while looking around for the right firm. Remember do a bit of research on the company you approach.
the advice you have just been given sounds spot on, the only thing i would re iterate is make sure the ip you choose you are comfortable with as you are going to be with them for a long time! it would not do any harm to contact 2 or 3. i feel i was lucky to find this site and only contacted melanie giles team who after speaking to a member of her team for a couple of minutes my mind was made up and i knew this was the company to work for us.
keep posting and let us know how you get on, wishing you the very best of luck!
Visit www.iva.com and read reviews about various insolvency practitioners and choose one or two to speak to. Good luck.
Last edited by David Mond on Sat Oct 11, 2008 10:32 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
