First you need to decide
whether the IVA is right for you. We suggest:
1) Read about the IVA pros and cons.
2) Try our IVA Wizard to see if
it recommends the IVA for you.
3) Chat through the options with a debt advisor from the
IVA Helpline (0800 197 4838).
Once you have decided if the IVA is for you:
We recommend that you talk to several IVA providers (click
here for a list). Choose one that you feel
comfortable with and who has agreed to act on your behalf, you will
then have to go through a number of actions with them before your IVA is finally put in place. These actions normally take between 4-6 weeks to complete. The Procedure:
Step 1: You will first review your entire financial situation with a debt advisor
from the IVA company that is representing you (click here for some IVA companies).
The debt advisor will work out how much you are able to offer your creditors
and whether the IVA is likely to be accepted (to find out if an IVA is the right thing for you, please try our IVA wizard).
If the debt advisor agrees that the IVA is right for
you then they will draft up a statement of affairs
to be passed to the Company Insolvency Practioner
(IP) that will represent your case to the creditors.
Step 2: The IP will then draft a formal written proposal for your creditors. This will normally detail all of your debts and the background to them. You will have to agree and sign this document as being the very best offer that you can make to your creditors. Your signature will have to be witnessed by a solicitor or a commissioner for oaths.
The Insolvency Practioner should also explain other
options at this point such as bankruptcy (to make
sure that the IVA is the right solution and that you
have considered all alternatives).
Step 3: Your creditors will be circulated with your proposal. They may accept it without modification or request a modification to be made.
If a modification is requested then your IP will
contact you with the new details (typically it will
involve an increase in your monthly contributions to
the IVA). Click here to
see some typical examples of IVA profiles.
Step 4: A creditors meeting is held. This is an opportunity for the creditors to discuss your proposal. Your creditors may not attend the meeting but will offer their acceptance of the proposal in writing. At the meeting as long as 75% of the value of the creditors who have responded to the proposal either in writing or person accept, then the proposal becomes legally binding on all creditors.
Step 5: The court and all creditors are formally informed of the result of the meeting and the IP is normally appointed as the supervisor of the Arrangement. S/he will monitor the monthly contributions, supervise the disposal of any assets and fulfil any other requirements of the creditors.
Step 6: Maintain your monthly payments into the IVA for the length of time agreed (normally 5 years).
You may wish to join our IVA
forum to share your experiences with others, the
forum also works well as a support environment for
those in an IVA.
Step 7: Once these and any other terms of your arrangement have been fulfilled, you will be free from your debts, and any outstanding balance will be written off.
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