Role of an IVA Supervisor
Summary: This article highlights the role of an Insolvency Practitioner as the Supervisor of an IVA.
If the IVA is approved, the insolvency practitioner named as supervisor in the approved IVA becomes the Supervisor of the IVA. This involves reporting annually to the creditors, debtor and the court. It also involves monitoring that the debtor is complying with the terms of the arrangement, agreeing creditor claims, making payments to creditors and generally ensuring that the arrangement progresses in accordance with the terms of the proposal. The debtor must comply with all reasonable requests of the supervisor, which may include periodically providing bank statements, accounts, wage slips etc.
The supervision of the Individual Voluntary Arrangement (IVA) includes the following duties:
Creditor contact
the creditors are precluded from contacting the debtor, and all correspondence must now be addressed to the IVA Supervisor.
Collecting payments
the IVA Supervisor will collect all Individual Voluntary Arrangement (IVA) contributions due. The funds are held in a specific account and the Supervisor keeps a record of all receipts and payments, and accounts for these to the debtor and the creditors. The IVA Supervisor will consider creditor's 'Proof of Debts' and administer the allocation of payments to the creditors proportionally as held. They will administer the inclusion of any additional unexpected funds, such as overtime payments or windfalls.
Dealing with assets
the IVA Supervisor will administer the inclusion of any assets into the Individual Voluntary Arrangement (IVA), for example equity in a property, endowment policies and savings. The IVA Supervisor has the power to enter a restriction over the home of the debtor with the Land Registry. This would prevent an owned property being sold without the IVA Supervisor's knowledge, especially in cases where any releasable equity would fall due to the IVA as part of the original agreement.
Reviews
the IVA Supervisor will carry out periodic reviews of the debtor's household income and expenditure, to arrive at an affordable monthly payment, which is fair to both the debtor and the creditors, and the IVA Supervisor will provide annual reports on the progress of the Individual Voluntary Arrangement (IVA) to the creditors.
Variation
the IVA Supervisor will call and hold any additional creditors meetings that maybe required. This could be in the event of a required variation to the original IVA proposal.
Monitoring
the IVA Supervisor will monitor the Individual Voluntary Arrangement (IVA), and deal with any breaches of the terms and conditions of the Individual Voluntary Arrangement (IVA). The IVA Supervisor has the power to petition for the debtor's Bankruptcy, should this become necessary.
Closure
the IVA Supervisor will administer the close of the Individual Voluntary Arrangement (IVA) and confirm the satisfactory conclusion of the IVA to the creditors, by a final report to creditors.