Individual voluntary arrangement - IVA process explained
First you need to decide whether the IVA is right for you. We suggest:
Once you have decided if the IVA is for you:
We recommend that you talk to several IVA providers (IVA providers 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.
You will first review your entire financial situation with a debt advisor from the IVA company that is representing you . 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 calculator). 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 Practitioner (IP) that will represent your case to the creditors
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 Practitioner 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).
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.
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.
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.
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.
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.