IVA Approval Process

Summary: IVA Approval Process - This article outlines the process of applying for an Individual Voluntary Arrangement (IVA), detailing the various stages involved and the rough timescales for each.

IVA Proposal

The first steps to entering an IVA involve the debtor speaking with a licensed Insolvency Practitioner (IP). This initial conversation will normally take place over the telephone, and the IP will ask a lot of questions relating to the individuals financial circumstances. Once they have deemed an IVA to be an appropriate course of action, the IP will request evidence of the individual's finances. This could include evidence of income (payslips or a letter from the employer), evidence of expenditure (utility bills, bank statements), evidence of the debt involved (credit card and loan statements) and evidence of the value of any property or assets. Finally, proof of identification will be required such as a passport. Once all this information has been gathered, the IP will calculate an affordable monthly payment after all other essential expenses have been taken into consideration. They will then draft a proposal to put to all the creditors involved. Depending on how long it takes to gather all of the evidence, this stage may take several weeks.

Creditors Meeting

Once the creditors, Insolvency Service and county court have been sent the proposal, they are usually given 2-3 weeks to review it. After this time, the IP will chair a meeting with all the creditors. This is may be a virtual meeting and often there may be an individual representing multiple creditors. In order for the IVA to be approved, creditors of at least 75% of the value of the total debt must be in agreement. If a decision is not reached, the IP may adjourn the meeting for up to 2 weeks.


Assuming the IVA is agreed, the IP will ensure that all relevant parties are notified. They will also produce a Chairman's report for the creditors, and notify the Insolvency Service and County Court. At this stage, details of the IVA are entered into the Insolvency Register. In total, the process of setting up an IVA usually takes between 4-6 weeks.

It is important to be aware that an IVA will only be approved by the creditors if they feel they will receive a greater return on the debt than if they filed for bankruptcy. Should the IVA be turned down, then the individual should discuss alternative options with their IP.

The above is provided as information only. Iva.co.uk does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.