What do I do next if I want to proceed with an IVA?
 
Although individual Insolvency Practitioners deal with an IVA application slightly differently, this is the most likely chain of events when applying for an IVA.

Initial Interview
We’ll call you to get a better understanding of your situation and confirm that an IVA is the most suitable debt solution for you given your specific circumstances. We’ll need information about your debts, monthly income and expenditure. We’ll then apply for an IVA on your behalf, either as an individual (single) or as a household couple, married or unmarried (joint).

Supporting evidence
The Insolvency Practitioner (IP) requests proof that the suggested monthly payment reflects the real amount that you can afford to pay. The IP also confirms that you can live without too much stress and discomfort. A range of evidence is used including
Evidence of debts (e.g. statements from each creditor) Proof of income (e.g. payslips) Proof of expenditure (e.g. rent, monthly bills, etc.) Value of assets (e.g. property valuation, make/model/year of car, etc.) Formal identification (e.g. passport, drivers licence).

Draft proposal for your agreement
A proposal document is drafted by the IP, often several pages long and in several parts (schedules).
Your IVA can be one of several kinds:
Single (one applicant) or Joint (two applicants)
Monthly payments only (normally 60 months)
Lump sum only (normally from remortgage)
Monthly payments plus lump sum
Once you have read the IVA proposal, you sign it if you are comfortable with the contents.

Proposal is despatched to your creditors
Copies of the IVA proposal signed by you and the IP are sent to each of the creditors.
Each copy is accompanied by background information and a covering letter from the IP.
Creditors are asked to read the proposal and vote on whether or not to approve it. They are also asked to provide proof of the claim they have for the debt.
Copies are also sent to the local county court and to the Insolvency Service.

Creditors' review and vote on whether to accept it
Creditors are given a minimum of two to three weeks to review and respond to the proposal.
A specific department of the creditor often deals with the IVA, such as the Collections and Recoveries department. Major banks often use a major accounting firm to help them process all of their IVAs and it can take a few days for the proposal to reach its destination.

Meeting of creditors and IP held
A date and time is set for a meeting chaired by the IP, where the votes from various creditors are heard. This is usually a 'virtual' meeting with votes sent by fax or post. Creditors vote to 'approve', to 'reject' or to 'approve with modifications'. Some creditors will not vote at all. If 75% (by value of debts) of voting creditors approve the IVA, it is approved for all creditors including those who rejected or did not vote. If voting is undecided, the IP can adjourn the meeting and communicate further with you and creditors for up to two weeks.

Post meeting The IVA is started
If the IVA is approved, all relevant parties are informed.
The IP sends out a Chairman's Report showing the voting and meeting outcome.
The court is also informed and a notice is sent to the Insolvency Service.
Your IVA is recorded on the Insolvency Register.
A new bank account is set up for the IVA.
Payments are made monthly and the IP begins the Supervision period.

Do you qualify for an IVA?

For more information see:
What is an IVA?




 
 
     

 

 
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