The IVA Process
IVAs were introduced by the government as an alternative to bankruptcy.They were designed to be in the interests of both the debtor and the creditor.
An IVA helps people in debt to come to a formal re-payment arrangement with their creditors.
This normally involves a large percentage of the debt being written off altogether. Furthermore, once an IVA has been agreed, interest on the loan is frozen so that the debt doesn’t keep growing.
In this section we’ll give you an overview of the IVA process.
Although we hope that it will answer all your questions, if you’d like to discuss IVAs in more detail with an advisor free of charge, please:
a) Call us on freephone 0800 138 5445
or
b) Send an email to info@iva-advice.com
The IVA Process
1. First you need to find an insolvency practitioner to set up the IVA for you.
Our IVA team can help find you an insolvency practitioner. Click here to contact our IVA team. This service is free of charge.
2. Once you have decided to set up an IVA, your insolvency practitioner will prepare an IVA proposal document containing details of:
- Your personal circumstances
- Your financial position, assets and liabilities; and
- How you propose dealing with your creditors.
3. After the IVA proposal has been approved by you, the insolvency practitioner files an Interim Order with the court. When this happens, your creditors will not be allowed to issue bankruptcy proceedings against you until they’ve have decided whether or not to accept your IVA.
4. Then the insolvency practitioner sends a “Nominee’s Report” to the debtor and creditors. This report contains his professional opinion about the IVA being proposed and whether a creditors’ meeting should be called.
5. The creditors then meet to discuss the IVA and vote on whether or not to accept it.
6. The insolvency practitioner administers the IVA and ensures that the creditors get paid according to the agreed terms.