IVA Procedures
An IVA or Individual Voluntary Arrangement is a newer alternative to bankruptcy. It provides a legal way to reduce the repayments on your debts. It prevents further charges from interest or non-payment being put against your debt. An IVA is a simple way to reduce your monthly repayments to manageable amounts, so you have money left over to live more comfortably than you have been under the shadow of debt.
The Procedure for an IVA is has various steps to it, which are set out below:
- Meet with an IVA Advisor and Discuss your needs
- Complete and return any IVA application forms that you receive and forward them with copies of recent bank statements.
- Once all of those documents are received; a qualified advisor will discuss the IVA application form with you.
- Your particular circumstances and application will be considered against a set of criteria by an advisor.
- An advisor will be assigned to you and will represent you in all communications with your creditors. At this stage, the advisor will identify themselves to your creditors as your legally appointed agent and this will stop any and all threatening calls, letters etc.
- An Individual Voluntary Arrangement proposal is created, setting out the terms and conditions of the IVA.
- An "Interim Order" is granted to protect you from any action that your creditors might take to try to force you to become bankrupt at this stage.
- A Nominees Report is prepared, which is an assertion of a professional opinion as to whether the IVA proposal is legitimate.
- Your creditors will then meet to vote on whether they agree to the IVA.
- The IVA is either approved or disapproved and you sign a contract to keep up your newly agreed repayment amounts to the IVA. When your creditors have agreed to it, they can NEVER make any claim to the past debts.
To find out if an IVA would be suitable for you, please use our debt calculator.
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